Gov is going to try to address this housing loan issue and going to try a bailout. It’s not going to help everyone, but just a small percentage enough so that politicians can say “they did something for the average joe”….
I’m opposed, but if they attempt to bail out it won’t really be that much skin off my back, ( just more of the skin I’ve lost on the corruption on Katrina aid, Halliburton funding for the war, and the S&L debacle). We can debate whether should or shouldn’t, how much they will, etc, but in the end, it’s all going to be lip-service and have no affect on the market.
The percentage that they can help is so small that’s it’s basically immaterial to the overall affect on the market. You can’t take the strawberry pickers in NorCal with $70/80K of combined income and keep them in a loan worth $720,000, plus property taxes, etc.
In the end, everybody they “help” will merely be saddled with a loan they can barely afford that is worth 30% more than they can sell their home for. They’ll be endentured servants servicing the loan.
In the end, what they’ll really scream for is to have foreclosure removed from the credit record sooner.
