National housing refinance plan in works?

The author (from my read) seems to be against this proposal.  However, it is the type and scale of program that needs to happen to effectively address the massive failure of the housing market.  If the government bailed out the corporations to the tune of trillions (and there is no if), $242B is nothing…and would be made up quickly.  Not that it’s enough real money, being leveraged mortgage debt.

Update: an extra couple of words on moral hazard.  I believe the free market is the best resolution of this problem.  However, we do not have a free market nor an effective capitalist market.  We have some bastard form of the same.  We’ve already demonstrated the willingness to help the banks…I don’t see where we would be wrong to do the same for homeowners.


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