Bloomberg News: “Boom-Era Property Speculators to Get Foreclosure Aid”

posted by
March 7, 2012
by Hans Bader  
Posted in Commentary

"Recently, the Obama administration announced a $26 billion settlement with the big banks that effectively robs Peter to pay Paul, ripping off innocent mortgage investors to reduce the big banks’ costs of bailing out certain delinquent and underwater mortgage borrowers. By ripping off investors, it makes investing in mortgages and mortgage-backed securities more risky, which in turn will eventually increase to cost to homeowners of getting a mortgage in the future (after the Fed stops artificially driving down interest rates). The settlement effectively forces thrifty, prudent people to pay their neighbor’s mortgage, while funneling hundreds of millions of dollars to left-wing special interest groups." (03/06/12)  

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