Next on the Bailout Express: The FHA!
So far, in the past ten months, we’ve bailed out several large financial companies, a few thousand banks, two of the three big automakers, dozens of state governments (thanks to Stimulus Bill make work programs), and nearly every progressive pet project under the sun.
So, what’s left to bail out? Well, how about all those people who are on the hook for loans with the FHA?
See, it turns out that the FHA, prompted of course by Congress, gave out a bazillion loans to people who were on the very edge of being able to pay them back. As long as our economy kept booming, they’d probably — probably — be okay. But if the economy wavered even a little bit, they’d be hosed and all those loans would come back to the FHA so fast you’d think they were attached by rubber bands. That’s exactly what’s happening now and the FHA is watching their cash reserves dry up like a shallow mudpuddle in the middle of Death Valley in July. Take a good look at these numbers. You and your children will probably end up paying that bill.
FHA-backed loans outstanding, which totaled $429 billion in fiscal 2008, are projected to hit $627 billion this year. FHA market share rose from 2.7% in 2006 to 23% last quarter…
Hey, just throw it in the debt bucket. Why the heck not?
Other Posts of Interest:
- Some Stimulus Facts: How Big Is It?
- The Bailout is Now A Trillion Dollars More Expensive than World War II. The Madness Must Stop
- The Big Three Bailout is Dead, Hallelujah!
Category: The Economy and Your Money
Very interesting, albeit disturbing, to read. Thanks for the link.