Taxpayers Bailing Out Housing Market

[Robert Oak]

Over on The Economic Populist, there is a new blog post, TaxPayers Already Bailing Out The Housing Market

And yet, just a couple weeks ago, the Bush Administration proposed using the F.H.A. to bailout homeowners.

While the two plans are different, they both involve using the same agency to do the same thing.
What really makes this silly is that the agency they want to use, the F.H.A. is already insolvent from bailing out homeowners

H.U.D. has asked Congress for taxpayer subsidies for the first time in three decades, primarily because of losses at their F.H.A. subsidiary

Go to the links to read my details but this is pretty damning where the US taxpayer, after getting foreclosed on and also bankrupt is now supposed to pay for the subprime bailout to boot.

[WorseBeforeBetter]

1. "after getting foreclosed on and also bankrupt"?

I haven't been foreclosed on, nor am I bankrupt, and I'm still not thrilled about his phucking bailout. I am sympathetic to those who faced true financial hardship, but to the rest (the entitlement crowd that lived well beyond their means), you brought this shit on yourselves. Bail yourselves out.

[napi21]

2. I listened to a radio program this afternoon that said the situation

today is similar to the one during the depression. Aparently the only home mortgages available then were similar to what we now refer to as baloon payment mortgages. When the market collapsed, a LOT of the people who had those mtg's were in a similar situation as many are today. The Fed. gov't decided to BUY those debts and set up 20 year loans. That's how the FHA came to be. I never knew that.

If what is being propsed today is similar to that program, I'm all for it. It keeps the debt with the homeowner, but fixes the problems made by the greedy lenders.

I really have to check into what they're now proposing, but so far it sounds like a good thing.