The Mortgage Moral Hazard Plan

by Alex Stenback on February 19, 2009

Moral Hazard Econompic

Loving this take on the mortgage bailout plan, from Jake at Econompic Data.

There are┬ámany reasons to be cynical about the mortgage modification portion of the Homeowner Affordability and Stability plan (see fact sheet) – mainly because it can’t help but reward many who purposely took on more risk than was prudent – but I think we’ll find that a vanishingly small percentage of the “3 to 4 Million at-risk homeowners” will be helped by this program, and accordingly, the costs will be far less than current estimates suggest.

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