After the stimulus and the banking bailout, what’s next: “fixing housing”, whatever that means (hence the scare quotes). So good news for struggling homeowners, Obama and Geithner are cooking up a massive fix to save the housing economy. What is it? You have to stay tuned for that, says Geithner:
We will announce the details of this plan in the next few weeks.
Our focus will be on using the full resources of the government to help bring down mortgage payments and to reduce mortgage interest rates. We will do this with a substantial commitment of resources already authorised by the Congress under the Emergency Economic stabilisation Act.
We think it will basically consist of borrowing from future taxpayers to reduce our mortgage payments. Thank you in advance.