"Yet Another Bailout: Housing's Hair of the Dog"
There has been a lot more broad questioning of the government's overall plan to keep the economy from falling into great depression like scenarios. There is a common theme in the Great Depression, and our current "Great Recession" (and probably most bubbles/recessions) --too, too much leverage. The US economy grows on the back of credit, but what will it take to get Washington to realize when they give incentive to take on debt, people (even unqualified people) will take it. Under no circumstance should the government be using tax dollars to provide incentive to under capitalized individuals or businesses to take on more debt. Barry Ritholtz at " The Big Picture " has taken notice of this in his September 8 th posting on the FHA. "As the WSJ reported last week, the number of loans backed by the FHA has soared, and "its market share reached 23% in the second quarter, up from less than 3% in 2006, according to Inside Mortgage Finan...