This is just a bad idea and a bad use of taxpayer money. Nevermind the fact that it is not the government's job to bailout either businesses or homeowners who got greedy and made bad decisions.
It sets a bad precedent as well. Think the government should step in help bailout people who can't make their second mortgages too ... you know ... borrow for a vacation, college, maybe a new boat. You remember the ads?
Here's what our good friend Jonathan Hoenig has to say on it. Ouch!
I guess I can see more regulation ... But for what ... to save us from ourselves or the bankers? I'm not sure. Seems like mortgages were already regulated. Everyone just found a way around them.
