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Not tired yet of getting looted by government bailouts? Well, Michael Shedlock of Mish’s Global Economic Trend Analysis has an article titled More Prime Foreclosures; More Re-Defaults that will get your blood boiling. You would think our government would have learned its lesson about bubbles after Alan “Bubble Blower” Greenspan and Fed Chairman Ben “Fannie Mae Freddie Mac Daddy” Bernanke pushed our economy to the edge of the abyss by holding interest rates down at artificial and unsustainable levels. You would be wrong. No, instead the government is going to provide taxpayer-funded incentives to refinance mortgages through the Making Home Affordable program. These newly refinanced mortgages will likely re-default in 6-12 months. Yes, you read that right. You are paying many of the same mortgage servicers who made bad mortgage loans to make more bad mortgage loans.
Details highlighted my Mish are provided by John Mauldin in his weekly newsletter titled This Way There Be Dragons.