housing bailout

Trying to reinflate the housing bubble with taxpayer dollars

The report out today says that the Federal Housing Administration is having the busiest year in its history.

Almost a year after the federal government launched its rescue of the housing market, nearly one in four new mortgages is insured by the Federal Housing Administration.
FHA loans also have become more popular because of the demise of many subprime lenders, which sometimes allowed buyers to purchase a property with nothing down and no documentation of income.

Remember what went wrong with the subprime housing market? People getting easy credit with "no skin" in the game buying houses they couldn't afford. Oh sure, there was massive fraud too, but that wasn't the cause of the bubble.
And yet, the federal government seems determined to do the exact same thing that got us into trouble in the first place. Only this time it is your taxpayer dollars that are financing it.

The Looting Of America

Who's to blame for the economy?
It's not just a political question, it's an economic question as well. It is essential that this question be answered because without an answer we won't know what to do to fix it.

Remember 1999? The federal budget was balanced. The trade deficit was still manageable. The unemployment rate was low, as was the poverty rate. There were plenty of good paying jobs out there. Corporations were making record profits.

It was also the year that the economy was broken.

"Let's hope we are all wealthy and retired by the time this house of cards falters."
- email sent Dec. 15, 2006, from one rating agency to another

'We face the most serious recession of our lifetime'

Billionaire investor George Soros didn't mince words yesterday.

"This is a period of wealth destruction. The people who make money will be few and far between. There will be a lot more money lost than made.
"I think this is probably more serious than anything in our lifetime," he says. In short, his feeling is that the United States and Britain are facing a recession of a scale greater than the early-1990s, greater even than the 1970s.

If it was someone other than Soros that was saying this (someone like me, for instance), you could probably ignore these sorts of warnings. There is always someone who will yell, "The End Is Near!"

The Cold, Hard, Unvarnished Truth

"Every action has an equal and opposite reaction."
- Sir Isaac Newton's Third Law

Two people were shot to death by police in Mogadishu when starving Somalians rioted over rising food prices. Starving Haitians are eating "mud biscuits" because they can no longer afford to eat real food. The United Nations Food Agency sees civil war breaking out in "sub-Saharan, African and also in Asia and Latin America" because of the rising price of food, fuel, and basic commodities.