January 28, 2009

Can we say: MORAL HAZARD!

So the Fed is now bailing out "distressed" homeowners. Here's the catch: you have to be two months delinquent on your payments. Wow! If that's not an incentive to stop paying your mortgage, I don't know what is. These people are totally oblivious to the concept of moral hazard. This is going to compound the problem more than imaginable.

Here's the link:

http://www.msnbc.msn.com/id/28891956/

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