Politicos on both the left and the right are getting upset with President Obama for his inability to stem rising foreclosures. There are calls for revisiting the idea of letting bankruptcy judges modify mortgages, a terrible precedent that would further trample creditors' rights. Even normally reasonable economists such as Mark Zandi are calling for some kind of new Homeowners stimulus. Of course, Barney Frank and Anthony Weiner (the Hot Dog reps) are looking to loosen Freddie Mac and Fannie Mae's lending standards, this time to help condo owners.
The fact of the matter is that the market is recorrecting itself, and the only way the government could stop this would be to form a new housing bubble through targeted tax cuts and subsidies and reduced lending standards. Unfortunately, some seem to be ok with that, which brings to mind Benjamin Franklin's famous definition of insanity.
Source: http://www.politico.com/news/stories/0709/25095.html
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