Welcome to the United Socialist States of America. Where free market capitalism reigns supreme, unless you are a major investment bank or an individual that should be convicted of a felony for mortgage fraud.
The U.S. has, for some time now, enjoyed a topping of socialism on its capitalistic desert. Medicare, Social Security, Medicaid, Fannie Mae, Freddie Mac... Wait! What a coincidence!! These social welfare programs are all in big trouble at the same time! Who'd a thunk it?
As my partner in crime Dr. Lalani likes to point out, you can always count on policy makers and regulators to do real harm when they are trying to fix a bad situation.
I want to state the bloody obvious for those running the train set in Washington, D.C. :
If a "homeowner" put little or nothing down, they don't lose anything when they get foreclosed on!
"We have to keep people in their homes" at all costs is a tremendously stupid thing to do. One of the more rational folks/Wall Street types that I speack with points out that every time the Government interferes with the price discovery mechanism of the markets - be it Fed support of the stock market, or subsidies for "homeowners", or selling gold bullion in to the market to suppress prices - they make matters MUCH worse and drag things out for MUCH longer than they would have otherwise. The difference being that the taxpayers get to subsidize the stupid and the criminal.
Hell of a system.
Mentatt (at) yahoo.com
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