MEGAN MCARDLE ON OBAMA’S HOUSING PLAN: “Well, the obvious point is that it represents a massive transfer to borrowers from lenders and the rest of us. As far as I can tell, there is no penalty for having borrowed more than you could realistically afford to repay–not so much as a speck of dirt on the credit report. The administration’s release talks a lot about ‘responsible homeowners’, but very few responsible homeowners have payments that amount to 43% of their monthly income.”
My take — let’s see what they’ve done with the first trillion before we give them any more money to play with . . . .