Banks Seek Sub-Prime Bailout: Privatize Profits, Socialize Costs
It was only a matter of time. John Cole leads us in the all American corporate cheer: “Privatize the profits, socialize the costs.” It’s what this country is all about:
The banking industry, struggling to contain the fallout from the mortgage debacle, is urgently shopping proposals to Congress and the Bush administration that could shift some of the risk for troubled loans to the federal government.
One proposal, advanced by officials at Credit Suisse Group, would expand the scope of loans guaranteed by the Federal Housing Administration. The proposal would let the FHA guarantee mortgage refinancings by some delinquent borrowers.
Credit Suisse officials have met with senior officials from the Department of Housing and Urban Development, which runs the FHA, and other policy makers to discuss the proposal.
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No bailouts! The market needs to correct and so does the greed of these financial corporations and Americans who think they all need a McMansion to live in.