RUSH: Here is Patrick in St. George, Utah. Great to have you on the EIB Network. Hello.
CALLER: Hey. Thanks for letting me be on.
RUSH: You bet, sir.
CALLER: First what I wanted to say is I actually haven’t listened to the news or anything for about two years, and I’ve been going to college, and two weeks ago I actually quit college because my wife is still in the business and we need more help there. And that’s when I actually started listening to your station, and I give you congrats. Everything that you say, I believe, just because that’s my feelings on it, too. Now, to get to the point, earlier you were talking about the housing market, and I’ve done real estate and stuff like that, and I believe that the regime is putting a blanket over our eyes, saying that the market’s going to come back with the foreclosure rate slowing down, but I don’t think people understand that there are more than just the three-year adjustable-rate mortgages that put us into this situation, that next year we’re coming up on to the five-year adjustable-rate mortgages, six-year adjustable-rate mortgages, that’s just going to add to another big wave of foreclosures that will add to the permanent underclass that you keep talking about. What do you have to say about that?
RUSH: Well, my theory is a little different on it, but that could be a valid reason. I think the reason why there could be a second housing bubble is because the unemployment numbers are going to keep going up, people simply aren’t going to be able to pay for the homes that they’re in, and therefore home prices are going to continue to fall. Look at all the homes that are underwater now. And, folks, try as you might want to believe it — well, I know none of you in this audience believe it, but the government cannot stop any of this kind of stuff. The government can’t make you whole; the government can’t pay your mortgage. Now, this bunch, this regime will tell you they’re going to do it, but they’re not.
Folks, look, there may be a bright side to all this. I remember growing up, I got so sick and tired, my parents warning me, telling me about the Depression, ‘You better save your money, son, you better save your money.’ ‘Why, Dad?’ I got all these horror stories of the Depression. ‘Dad, I didn’t live through it. I appreciate the warning, but I can’t relate to it.’ Well, maybe so, maybe in a few short years we’re going to be able to nag our kids and grandkids about our own Great Recession and maybe get back at ’em.