Saturday, May 10, 2008

Taxpayers are likely to pick up the tab for bad mortgages

In my post from May 5 I stated that private debt of banks, mortgage companies etc. will likely become socialized, i.e. will become that of taxpayers. This is the confirmation of this statement:
Federal Housing Administration will guarantee( if this bill becomes a law) $300 billion in highly risky mortgages, those that no private institution in the right state of mind would guarantee.

No comments: