Barney Frank’s Housing Boondoggle: “Watch Your Wallet”
The Wall Street Journal warns taxpayers to “hold onto your wallet.” Why? It cites Congressman Barney Frank’s multibillion dollar mortgage bailout bill, which may pass the House soon. That costly bill would encourage borrowers to default on their loans to be eligible for a bailout. Under it, bailout beneficiaries would get something (a new, smaller, lower-rate mortgage) for nothing. And the Journal predicts, based on economic studies, that a lot of irresponsible borrowers would default on their new, smaller loan, too, sticking taxpayers with the tab for even more money. We commented earlier on Frank’s lame justification for his bill and criticism of it in the Washington Post.