I agree that the gov’t will continue to be involved. But, with that said, the banks are borrowing from the Fed at near zero percent, and lending it bank to us at 2-3% by buying treasuries. Since this is being done on purpose, I think the banks should take all losses associated with the housing problem. The Fed should also charge them interest on the money they have sitting at the Fed. The banks didn’t do proper diligence when lending the money in the first place and they misrepresented their offerings to invenstors in Mortgage Backed Securities, so they’re ultimately to blame. The Banksters are filling in their financial gaps with our money, and the Fed is allowing it to happen by design. Folks should be outraged if the banks don’t absorb the housing losses and contribute more to fixing the probelm.
