mikeandgerry wrote:They risk running into a wall of moral hazard if they bail out people who bought homes they couldn't afford. .
The moral hazard has already been induced with artificially low interest rates and government insurance.
That's what caused people to make the poor decisions they did.
And this is just the housing market. Wait until the commercial market does it's "dead man's float".
The USA is dead, we just haven't laid down yet.