Paying $75 Billion for Others' Greed

Obama will unveil his Homeowner Stability Initiative at noon today. And it will cost you. Apparently the plan has grown from the previously expected $50 billion to $75 billion now. The focus will be aiding house flippers... er, homeowners, who "owe more on their mortgages than their homes are currently worth, and borrowers on the verge of foreclosure." Heaven forbid they should be in foreclosure on their 4th spec home in Lake Tahoe. Good thing Obama realizes the insanity of this plan: "All of us are paying a price for this home mortgage crisis."

Another key component: a new program aimed at helping homeowners said to be "under water" — with dwellings whose value have sunk below the principal still owing on their mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 to 5 million families do just that.

We have discussed previously why the idea of subsidizing mortgages is flawed from the very beginning. How about this novel idea: kick them out on the street and have them rent at a price they can afford. Will do miracles for real home values and will also drop rents to affordable levels all across the country. Is Mark Haines the only person really outraged by this "plan" and when will outraged Americans finally take to the streets? After all this is everyone's money being flushed down the drain.