Mar
29
Reuters tells us that: “President George W. Bush said on Saturday he is looking to expand U.S. efforts to help struggling homeowners reduce their mortgage payments, as Democrats pressed for a more substantial federal role.”
The story continues: “Democrats in both the Senate and the House of Representatives are crafting legislation that would permit the FHA to offer $300 billion more in new guarantees to refinance distressed mortgages that banks and mortgage holders have agreed to write down.”
Three. Hundred. Billion. In Guarantees. Can that even be fathomed? From where is that money coming? There are only two places that government funds can come from - taxes, and inflation. I’m guessing that since no one will suggest raising taxes (thankfully), they will print the money and cause further inflation.
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