Prop. 12 veterans' bond act

Officially asks for:
-This act provides for a bond issue of nine hundred million dollars ($900,000,000) to provide loans to California veterans to purchase farms and homes.
-Appropriates money from the state General Fund to pay off the bonds, if loan payments from participating veterans are insufficient for that purpose.
-Costs of about $1.8 billion to pay off both the principal ($900 million) and interest ($856 million) on the bonds; costs paid by participating veterans.
-Average payment for principal and interest of about $59 million per year for 30 years.

argument for:
On November 7, 1922, the people of California authorized the very first Veterans’ Bond Act for the Cal-Vet Home Loan Program.

The Cal-Vet Home Loan Program enables veterans to obtain low-interest rate loans for the purchase of conventional homes, manufactured homes, and mobile homes without costing the taxpayers one cent.

All costs of the program, including all administration costs, are paid for by veterans holding loans. There have never been any costs to the taxpayers of California.

Cal-Vet home loans generate thousands of housing industry-related jobs with millions of dollars in annual payrolls.

This measure was placed on the ballot by a unanimous vote of 75–0 in the State Assembly and 39–0 in the State Senate.

Your “Yes” Vote on Proposition 12 will enable more veterans to buy homes in California and help the economy at the same time, all with no direct cost to the state’s taxpayers.

against:
money that people might put into private investments, the profits on which are taxable and generate money for the state, would instead go to buy state bonds, which do not generate tax income.

"In this time of peril in the mortgage market there might be some defaults that won't be covered" without taxpayer support

He also argued that with limited money available, any bond proceeds should go first to injured veterans and those who served in combat zones.

As the proposition is written, the bond money would also be available to those who served in the military without leaving the United States.

my take:
This is another of those "sounds good but is it" propositions. It keeps saying that taxpayers have never had to pay for this but look at the economy we live in... unprecedented waters we navigate these days.

final word:
I'm staying neutral on this on...