Has the Government Learned Anything?

Posted by admin | Uncategorized | Friday 4 September 2009 7:40 pm

hasgovernmentlearnedI just read at Cato@Liberty.org that the FHA (Federal Housing Administration) has been hemorrhaging money due to all the housing problem for the last couple of years.

The FHA insures private companies that handle mortgages. This sounds great. Unfortunately, without creating new standards for who can get money from a mortgaged house, taxpayers are in the boat with the likes of AIG. Meaning, we are all likely to have to pay for more private sector mismanagement.

As a taxpayer, this is really enough. At what point does the government allow poorly managed companies to fail? If we let a relic like GM go, there would be many more millions available for small business to grow, some of which might become solvent companies that might break out into industry leaders.

According to Cato@Liberty.org there is a projected price of 629 billion dollars outstanding on loans owed to the FHA.

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