Ok..so where did it go??

I saw an article earlier that said that our new Fed Reserve Chairman Bernanke suggested to sure up the economy from the impact of the upcoming issues regarding forclosures, that the government should act as a guarantor on the large ticket homes essentially. then assume them and sell the loans in the secondary market. You know any ones over 1 million dollars. Now my accounting degree left me a little lacking regarding finance and the markets....but I think that his idea was for the government to essentially guarantee large loans for 1Mil dollar homes. ???? ???? ???? I am trying to clean the blog up a bit so I will just use this acronym.

W.T.F.

Why is the government going to go and hook up the rich, by guaranteeing their loans, while you have people scraping by on less than $25,000/yr fighting to hold onto their homes, and raising a few kids?

That is blatant cronyism. Isn't it? No, I recognize this. More backwash from that trickle down perspective. If you really want to help the economy...shore up the housing market for 80% of the current home buyers who could use their government backing them not 3% of the population who can afford to go somewhere else if the go into default.

Now, I have that out of my system...I think the idea is preposterous (sp?) that the government backs any loan to steady the economy. We should have thought of that when the whole housing fiasco was happening. At the same time, the government knew what it was doing, but they also knew that without it our economy was going to spiral downward....so they used it to delay the inevitable. Now it is going to be worst.....so genius Bernanke thinks the answer is to put the fragile structure of our governments financial backing to prop it up. It is this kind of thinking that is going to leave our children with an even bigger mess to clean up. The great part is we are doing a 1/2 a.... job of educating them so most of them will never know the difference.