How much is Obama's mortgage bailout plan anyway? The New York Times and Wall Street Journal report the plan costs $275 billion; the Washington Post claims just $75 billion (links to articles below). That is a huge spread people! Does anyone really know the true cost? If they do, are they telling us?
What do we get for that money anyway? Our tax dollars are being used to let people keep property they bought when they borrowed money they couldn't repay. Instead letting these borrowers work themselves out of their own debt (like selling property they can't afford or filing for bankruptcy), the government is appropriating OUR money to keep these people in the life style they can't afford.
Obama claims the program will support real estate prices. Haven't we learned that government interference with the free market doesn't work. Real estate prices were unrealistically high (caused by an increase in the monetary supply through credit expansion) and now must fall to true pricing levels. Prices are determined by supply and effective demand. The market is bigger than the government. Supporting artificially high prices does what exactly? It may postpone the inevitable fall in prices, but it will not stop the decline. Does anyone know what they are doing?
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