I get worried when I find myself in agreement with President Bush who I consider the worst president in the last hundred years and would be in the running for worst of time if not the abomination that was the Presidency of Andrew Johnson. Nonetheless, I agree with Bush that there should be no bailout for those facing foreclosure.
Bush also claimed the economy is in for a soft landing which I'm skeptical of. However, I've been thinking for years now that risk on residential mortgages is underpriced considering the unsustainable run up in property values and lax underwriting practices. Looks like other investors have come to agree with me and nobody wants to lend driving jumbo rates up.
It's really not possible to prevent this foreclosure wave without the government distributing 10s of billions if not 100s of billions of dollars to irresponsible people who borrowed more than can afford. A bailout of this scale would create moral hazard has borrows will not incentive to be responsible.
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