“Federal aid “would come at a cost,” said Douglas Duncan, chief economist at the Mortgage Bankers Association. “It has to be paid for and the question is would the 34 percent of homeowners who have no mortgage be willing to pay taxes to support the bailout of people who traditionally have not managed credit well?””
Thats a great quote. I wonder how all the renters that are scrimping and saving will feel about this. Are the FB’s going have to give back all their toy’s that they bought with HELOC’s, assuming there is a bailout?
The ‘only’ form of bailout that I would support would be if the Fed created their own subprime lending body that would buy up subprime loans and re-finance the FB’s into something they can afford. So if Joe FB is going to default on his 800K ARM, he gets refi’ed into something much lower.
