Bizblogger

Site for Free Markets and Free People

Friday, September 12, 2008

Why It's Bad for Government to Own Mortgages

Four Democrat senators prove why it's a terrible idea for the government to be in charge of half of the mortgages in the U.S. The senators want the government to "temporarily" stop the foreclosure process altogether. How that is supposed to help anyone is beyond me. And it creates a terrible moral hazard as well as conflict of interest. (How about just stopping foreclosures in, say, Texas? Or for that matter, why not just forgive the loans entirely and let the rest of the taxpayers pay for it?)