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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