You wouldn’t know it, but there’s other news besides the showdown between House Republicans, Senate Democrats and Barack Obama over keeping the government running. You also wouldn’t know by the media coverage that the blame lies at the feet of the party that really hates passing budgets. Wouldn’t you hate passing budgets if your policies created situations that resulted in yet more taxpayer funded bailouts?
The latest is a nearly $2 billion bailout for the FHA the Obama administration is seeking. As Investor’s Business Daily pointed out, that will just be the beginning.
After years of covering up FHA’s losses, the administration now seeks a multibillion-dollar bailout for its new subprime mortgage anchor program — as we predicted.
Over the past three years, we’ve criticized the administration for using the FHA to pick up the subprime slack left by government-plundered Fannie Mae and Freddie Mac. We warned that the housing agency faced mounting losses from a raft of new subprime loans and would need a taxpayer bailout.
The FHA called such reports “irresponsible.” Now it’s quietly hitting taxpayers with a $1.7 billion bailout.
In a letter Friday to Congress, the agency said it needed money to stabilize its long-term finances and cover potential losses on a surge in low-down-payment subprime mortgages. It marks the first time the FHA, which insures $1.1 trillion in mortgages, will require taxpayer funding in its 80-year history.
And it won’t be the last of the bad news. Analysts say the agency will need far more than a couple of billion to shore up its tattered balance sheet. Former Fannie Mae official Ed Pinto figures the FHA will need more than $25 billion. “The FHA is woefully insolvent,” he said.
That’s on top of the $187 billion that taxpayers already footed to bail out Fannie and Freddie. (Read More)
It just never ends. They put in place policies that cause these debacles, then stick it to the taxpayers to bail them out. Of course, anyone who objects is accused of being a racist suicide bomber who hates poor people.
Sometimes I’m afraid it won’t end until we have a complete collapse, which of course will be blamed on those tea party anarchists with the audacity to use math.
Update: Linked by Liberty Unyielding – thanks!