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, … Continue reading The no-loss economy — except for taxpayers