August Surprise - Massive Homeowner Bailout??

I'm still a bit skeptical, but I would not be surprised if Obama ends up acting on a plan to have Fannie Mae and Freddie Mac provide a massive bailout to all homeowners who are under water on their mortgages. Just like that, 1 man can pile $1 trillion in incremental debt onto responsible Americans by forcing them to pay for those who overpaid on their homes.

Alexis de Tocqueville famously said that "the American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."

We could be in the midst of this disaster right now...