Tuesday, February 13, 2007

Throwing Money Into A Swamp

Another Post From Nov 12, 206:

From the UPI:
"Government officials and homeowners are upset by a $7.5 billion rebuilding program's pace more than a year after Hurricane Katrina hit Louisiana.

Though about 79,000 families applied to the Road Home program, only 1,721 have been told how much money they'll receive, the New York Times said. Just 22 received access to the cash provided by the federal government and distributed through the state. Homeowners who rebuild or buy new houses are eligible for grants of up to $150,000 to uninsured losses."
Now, that is totally.... believable. And utter nonsense. There is no reason that after over a year since the storm, only 22 people/families have been given money out of the $7.5 billion dollar grant program?!?! But then, this is the federal government.

Here's a question... why have insurance when the government is just going to give them free money. Wait, wasn't this the point of having flood insurance? If they didn't have flood or home insurance, then why are they being rewarded with free money??

Now, you may ask, why doesnt the state of Louisiana or the city of New Orleans do something for their own residents. Good question....
"New Orleans Mayor Ray Nagin expressed dissatisfaction with the program's pace, announcing earlier this month that the city was developing a plan to lend money to people waiting for Road Home grants, the Times said.

A similar program in Mississippi also has been plagued by many of the same problems, the Times said. New data from this program showed it so far has paid $320.6 million in 5,201 grants."
Wait. If New Orleans is sitting on money that they can give away as loans as part of their loan shark program, they why aren't they helping more of their own citizens themselves? New Orleans can apply for these types of grants themselves and help their people themselves.

The article states that the Mississippi program is also suffering through problems. But, how can it be the same when New Orleans does not even have a program yet. And, the federal program in MI has helped over 5,000 people/families compared to 22 in Lousiana. Now, which one has failed?

Using simple math, MI has paid out on average $61,641 per pay-out. Wow, those must be some expensive houses. Wait, how come these people only were insured for part of their home's value?? Is that even possible? You know, you could get a nice small single family home for that amount of money in OK. Is this program spending massive amounts of federal monies to buy people's houses for them. Or, would the federal government still hold the rights to these houses?!?!

Isn't there a federal law that forbids the govt from giving money for constructing in flood-prone areas? Thought so!

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