The Feds are inflating the housing bubble and enticing vulnerable people into it once again

It is not a mercy to entice someone unprepared for home ownership to buy a home.  The result last time was foreclosure and a massive reduction in working class net worth.  I simply do not understand what the administration's logic is.  It  It's as if they don't really care about people who aren't home builders or mortgage bankers.  It seems so cruel to do this to people. Hattip Carpe Diem

Fannie Mae and Freddie Mac are planning to guarantee some loans with down payments of as little as 3%. That should help underwater homeowners. Let’s begin by saying that’s not necessarily a bad thing. There are instances where loans should be available to borrowers without the means to place a down payment. It’s just that I can’t think of any.

Read about it here.