Is this even constitutional? Okay, maybe that is the wrong question. Is it morally correct? Okay, since when has our government concerned themselves with being morally correct.
The US government is now the biggest player in the American mortgage underwriting business. Does this mean that the taxpayer is now also in the mortgage business? <a href=”http://www.abc.net.au/news/stories/2008/09/09/2359326.htm?section=world”>This</a> article at FoxNews.com suggest that this is “bad principle” and, I agree. The Fed has no business bailing out private industry. the economy is not in very good shape at this point but, in my not so humble opinion, this is welfare for the corporate giants. It goes against our capitalist system.
As the article also points out, “American taxpayers will end up footing a bill that could run into hundreds of billions of dollars”. Have we or, will we, get any of the future profits? I think not.