In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.
This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.
Classic. U.S. taxpayers not only own the bad loans of GM, AIG, GMAC, et. al, but also the collateral behind them. While the Fed speaks of draining liquidity from the system, the words are shattered by political necessity of infinite liquidity. There will be consequences to these actions.
Source: nytimes.com
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