In 2009, President
Now, I understand Mr. Obama intends to bypass Congress and have the Federal Housing Finance Agency, which regulates Fannie and Freddie, loosen the terms (another way of saying "deregulate") of the President's Home Affordable Refinance Program. That's a program in which the government (that would be the taxpayers in this case) backs loans of up to 125 percent of a home's value. The president wants Fannie and Freddie to reduce loan fees and to waive fees on borrowers that refinance into loans with shorter terms.
If Fannie and Freddie were privately-owned companies, they'd never take these kinds of risks and they'd never survive with these kinds of losses. They've become a magic well that the president can draw money from whenever he chooses, and we are stuck paying his bills. While the
This is just another artificial stimulus at our expense. If the president had allowed the housing market to bottom out naturally, it would have already happened a long time ago, and we'd be rebounding. As it stands, we're still walking the housing market down, cushioning its fall with our tax dollars.
This is a backdoor stimulus. It's not helping the inner cities. It's not helping the crowds that are occupying Wall Street. It's helping people who are already making their payments. It's helping people who don't need help.