He was going on and on about Bear Sterns and exactly who was to blame.
Lewis talks about how the poor, people that can't even pay rent, are offered mortgages to buy a house. Lewis correctly points out that given the opportunity and being in the same financial situation, who wouldn't take the offer. Is that being stupid.
Regardless, we have another situation where the little people on the eviction and foreclosure end of the sub prime mortgage disaster are left on their own.
The Feds will bail out Fannie and Freddie, taxpayers will get the bill. Many of the taxpayers will have lost their homes to the predatory lending practices of the unscrupulous.
Imagine, you loose your home to foreclosure. The loan was designed to conceal its flaws, probably a continuous stream of arms that raise your payments. Now you are in an apartment paying taxes and guess what. Your taxes are going to bail out the lending institutions that concealed the downside of your mortgage. Welcome to America.
Reuters: Fannie, Freddie rescue gets big price tag as House vote looms
A Bush administration plan to support Fannie Mae and Freddie Mac could cost U.S. taxpayers $25 billion, congressional analysts said on Tuesday in a report that fueled debate as Congress took steps to approve a housing market rescue package.
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