How many "stated income" liars and illegal aliens are on the list of those to be helped? How many "no doc" loans were made to wholly unqualified borrowers? These people should not be bailed out. It's time for them to be out of the market. It's NOT time for their stupidity to be rescued by laying the burden on taxpayers.
I said here on FR many, many months ago that in the end those of us who bought houses we can afford would wind up paying for the houses of those who bought what they could not afford. Several people promptly explained to me how impossible that notion is. Uh-huh. It's been obvious for a long time that this is exactly what was coming, and this is PRECISELY the kind of move that SHOULD cause an all-out tax revolt.
MM
I think the GOP should advocate punishing the borrowers and lenders for fraud. If a borrower states he earns 60,000 and his IRS records show 40,000 he better have a lawyer on hand when he is called in by the fed investigators. On the other hand if the lender is willing to give him a very large loan when his salary on the application says otherwise, then the lender better have a lawyer on hand when he appears in front of a fed investigator. Note both political parties never advocated punishment for the fraudsters. I think the public would support this before they shell out taxpayers money to bail out the banks and borrowers.