“Congress thinks you can, especially senators Christopher Dodd and Hillary Clinton. What’s more, a lot of the people you’re being asked to bail out lied on their loan applications or signed up for loans without reading the terms.”
“Here’s what’s going on, as explained by Caroline Baum of Bloomberg.com:”
During the housing boom of the last five years, people with bad credit histories, many of whom lied about their income and nature of employment, got mortgage loans they weren’t qualified for to buy houses they couldn’t afford. Now that house prices have stopped rising, and the house can’t be refinanced or sold at a profit, Congress wants the taxpayer to subsidize the mortgages so these folks can remain in their unaffordable houses.