Thursday, 19 February 2009

Another day, another bailout

Is this "help for homeowners" new money. By my reckoning, Obama has spent over $1 trillion this week alone.

U.S. President Barack Obama pledged $275 billion to cut mortgage payments for as many as 9 million struggling homeowners and enable Fannie Mae and Freddie Mac to keep loan rates down.

The plan includes $75 billion to reduce monthly payments for borrowers, helps homeowners with loans owned or backed by Fannie Mae and Freddie Mac to refinance at lower rates and promises incentives to industry. Obama will double by $200 billion funding available for Fannie and Freddie to buy loans.

Is there a limit to the US taxpayer's generosity?


Irrational Doomsday Blog said...

The only limit on taxpayer generosity is the confidence in the currency as a safe store of value. Which we are attempting to test.

Anonymous said...

Is there a limit to US taxpayer generosity?

Without a doubt! We just haven't reached the point where our generous overlords, the Chinese, have said enough. I suspect that day is getting closer.

Anonymous said...

I don't think all of this is new money. The 75B is part of the November TARP money that was "pulled back". The 200B to F&F I'm not sure - some sources say this was set aside for F&F in the original TARP but whether this was part of the first 350B or the second "pulled back" 350B I can't find out.

dearieme said...

Denninger - "We propose to give "foreclosure relief" to people who lied on their mortgage applications". That would be just the thing for Lord Mandelson, then.

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OldSouth said...

Is there a limit to the US taxpayer's generosity?

I didn't realize I was being generous! The money to pay for this will be extracted from the labor of my grandchildren.

Those of us who in 2008 jumped up and down, screamed, and protested that Obama is clueless are being proven correct.

Towjam said...

Nuff said..

K T Cat said...

Oh Alice, you silly, you're still using the old way of thinking about things! None of this is a burden on the taxpayers at all! Aftrer all, has Obama or any of the Democrats mentioned tax increases yet? No, of course not!

See? We can spend and spend and spend and never raise taxes. Yay!

Towjam said...

"See? We can spend and spend and spend and never raise taxes. Yay!"

That’s right. Just have to wait for the next bubble. Tech then housing, a little one in oil and metals.
Wonder what’s next?

JPT said...

Oh dear.
That's all I can say.

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shameless plug from costa rica what are they trying to do create a property bubble down there too?
A new Dubai?
what I do like from down there is the economic analysis of Jim Willies who is aparently trying at survival down there by living cheap on a pile of gold while the economic crisis unfolds and he sends out a usefull commentary on the follies.

Anonymous said...

Just 30 days in office and spending like there is no tomorrow - oh, maybe there IS no tomorrow..