Equal Housing Spender

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Central banks and governments trying to artificially prop up home prices is a house of cards. Since the housing meltdown and credit crisis shifted into full gear near the end of 2006, the Federal Reserve and Treasury have been slashing interest rates and keeping the money printing presses on overdrive.

With the $787 billion spending bill signed into law in February, the White House is attempting to catch up to the Federal Reserve in expenditures aimed at stabilizing the teetering economy. The bill breaks down to $281 billion in tax cuts, $308 billion in outlays, and $198 billion for benefits spending.

Taxpayers will become well acquainted with footing the bill for bailing out those who fell by the wayside in the housing meltdown. President Obama is fond of saying his housing rescue plan focuses on those in need but does not help speculators. Are we missing something? Considering how complicated the securitization process is, how exactly do you mead out the speculators from those who fell victim to predatory lending practices? Sounds more like trying to find a needle in a stack of needles.

The U.S. Government is now indeed an equal housing spender. Uncle Sam is looking to bunk up in the spare bedroom.