Fannie/Freddie Mortgage Principle forgiveness?!?

i don't know about the world, but certainly the US taxpayer. such a transparent attempt to buy votes ahead of an election would take Obama approval ratings into Bush land.

i believe something like 24% of mortgage holders are underwater. with a 62% homeownership rate, and a 65% or so rate of houses having mortgages, that's 10% of households. And of course Fannie/Freddie don't own or guarantee all of those underwater mortgages, so the number which would actually be bailed out would be even lower. Not going to happen.

More to the point, that they are even considering such a proposal shows how clueless this administration is. Another gimmick to short term prop up the housing market while creating a massive long term liability is exactly the opposite of what we need. We need job creation, and the best way to do that is to create a stable outlook on fiscal/monetary policy so that businesses (which have money) feel confident hiring, and banks (there is plenty of loan availability) feel comfortable lending, and investors (tons of cash) put that money to work.

"We need job creation, and the best way to do that is to create a stable outlook on fiscal/monetary policy so that businesses (which have money) feel confident hiring"

Only problem is that businesses are not interested in hiring in the U.S.:

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