Learning to Love the Housing Bailout

It's unfair, but the economy doesn't care

Illustration by Topos Graphics for TIME

Learning to Love the Housing Bailout. It's unfair, but the economy doesn't care.

Tennessee senator bob corker is not in a forgiving mood when it comes to people whose home loans are underwater, particularly if they borrowed beyond their means--or cheated to do so. That's some 11.1 million loans and over $700 billion worth of negative equity. He's torqued that the recent $26 billion housing-industry settlement with the big banks allows them to lower their loan principals--and possibly harm investors who own the mortgage bonds tied to those loans. He nearly came unglued when a Federal Reserve official suggested that the government's mortgage guarantor, Fannie Mae, could also fund a bailout for distressed homeowners.

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