The government has yet another scheme to defraud the American tax payer.

Suppose a bank lent $300,000 on a mortgage loan. The seller gets the money and goes away happy. The buyer is happy, until the home price falls to $225,000 or the interest resets at a higher rate that he can't pay. He is now out $75,000. The bank is unhappy too. The buyer is not making his monthly payments. What to do? Foreclose. The bank takes the loss. The buyer licks his wounds and moves into a one-room apartment. End of story? No. In the American no-loss economy, Congress passes legislation that will now allow the authorities to prevent foreclosure. The government will have the bank lower the payments. Will the mortgage size of $300,000 also be reduced? We are not told the details. It probably is. But the government will also guarantee the loan at some value that aids the lender.

What all this does is shift the loss (we do not know how much of that loss because we are never told such details by the schemers) to the government, that is, those who pay taxes. The taxpayers become an insurance company after the fact, whether they like it or not, for whatever risks and losses the government chooses to indemnify after they occur. If a hurricane is no-risk, then why not a loss on buying a house? Why not indemnify everyone with a 401k that is looking at 30-40% losses? Every day brings yet another government "rescue" promotion, that is, bailout scheme. These guys are worse than any stock promoters!