Foreclosure rescue bill is a hideous idea
The US Senate is poised to pass a huge foreclosure rescue bill as soon as today. (see article)
Basically the bill says the Federal Housing Administration would back $300 billion dollars in new loans for distressed borrowers that are currently considered too risky to qualify for a loan now.
Hmmm... correct me if I am wrong but didn't we get into this mess by lenders making loans to people who were bad risks?
So the government says that the solution is to make it possible for more loans to be made to people who should not have them. WOW! The solution to our problems was so simple, why couldn't I have thought of this? I wish I could be as brilliant as out politicians.
We all know that this legislation will pass in some form due to election year…