Isn’t that pretty much what they’re already doing?
Exactly!
I think the initial post (not the one quoted above) was a bit odd, given poster should realize this is already happening. Besides, it is nutz for the original post to suggest even MORE of what is basically Ponzi Scheme support of the housing market forced upon the US taxpayer.
US government is indirectly already promising to cover like 90% of newly issuing mortgages, because if homeowners default for whatever reason (such as a price decline) then the US government (= you and me) will have to cover the bail out of those billions of mortgages that have been insured.
Oh, and YES, it is inevitable this will all end up with the US taxpayers covering the cost, but there isn’t enough tax revenue coming in to cover the cost of default of all those US government insured mortgages – which leads us again to why the US dollar is DOOMED. They will have to print huge amounts of dollars.
