Home / Congress / Another Federal Housing Bailout: FHA Needs $943 Million
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Another Federal Housing Bailout: FHA Needs $943 Million

Written by Gary North on April 11, 2013

The FHA is almost out of money, so the federal government is going to tax or borrow almost a billion dollars, so that the subsidies can continue.

You wouldn’t want a free market in housing would you? You would not want supply and demand to set the price of homes, would you? Of course not.

The housing market is a government-funded housing market. The mortgage market has a Bad Housekeeping Seal of Approval stamped on it. It was nationalized by the Secretary of the Treasury in September 2008, and it’s going to stay nationalized.

The Federal Reserve is counterfeiting half a trillion dollars a year in brand new digital money to keep the housing market “healthy.” This is the basis of the housing recovery. Without this, the housing market would be in the intensive care unit.

This is capitalism, USA. This is Uncle Sam’s version of It’s a Wonderful Life. This is Jimmy Stewart handing out his honeymoon money to depositors. But there is this difference. It’s not honeymoon money. It’s retirement money. And there is also this difference. It’s not his money. It’s yours.

What’s the problem at the FHA? It’s almost out of money. But what about all those loans it made? Too many of them have gone bad. Sorry about that.

For four years, the FHA has assured Congress that this was not a problem. Sorry about that.

What will Congress do about that? Hand out our money, of course. Congress will blame the FHA for making all those bad loans. It will blame the FHA for having misinformed Congress. Then it will reward the FHA to the tune of about a billion dollars. Lesson: nothing succeeds like failure.

How much money has it lent out? Over a trillion dollars.

Will this ever end? Not until the Great Default.

At the very heart of the American Dream is the American Lie. The federal government is going to renege on its promises. The government is headed for default. Sorry about that.

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5 thoughts on “Another Federal Housing Bailout: FHA Needs $943 Million

  1. John Littlefield says:

    Keep you GD hands off of our money.

  2. The greatly missed George Carlin once said "They call it the 'American Dream' because you'd have to be asleep to believe it!"

  3. He can send billions of dollars to Egypt to support the Arabs and terrorists……millions to support the banking industry (which is overwhelmed with fraud)………but we can't support our military to the extent that it should be supported

    We have our sticky little fingers dipped into social. Security…..which was already paid for by hard working taxpayers

    We have unsecured borders

    And he still insists on spending money which we do not have….to support all the free loaders

  4. The FHA is just one more corrupt government agency that needs eliminated to bring the federal government in line with the constitution , which nowhere says the government can be in the housing business .

  5. Bob Marshall says:

    With taxpayer bailouts Obama has taken control of the the auto industry, the banks, increased regulations on both the coal and oil industries. The Dodd-Frank legislation, Obamacare which takes effect in 2014, the government will have control of 1/6th of the U.S. economy. Fannie Mae and Freddie Mac government are both support enterprises. If Obama succeeds with Cap & Trade legislation, there will be taxes on everything related to carbon, not just emissions. Obama sets on the board of directors of AIG. Fired the CEO of General Motors. Just a few of 25 pages of quotes from the the president. " I believe in returning the nations wealth to its rightful owners." Barack Hussein Obama, President of the United States 2010.
    " It's not that i want to punish your success. I just want to make sure that everybody who is behind you , that they've got a chance at success, too. ..I think when you spread the wealth around , it is good for everybody."– Barack Hussein Obama.
    ' I will not sign a healthcare reform plan that adds one dime to our debts, either now or in the future."–Barack Hussein Obama, president of the United States, 2009.
    " The healthcare reforms i am proposing would not apply to those who are here illegally."
    " If you like your healthcare, you can keep it."
    ' My job to the Muslim world is to communicate that the Americans are not your enemy. We sometimes make mistakes. We have not been perfect." — Barack Hussein Obama, President of the united states in an interview with Al Arabiya, January 27, 2009.
    In order to assure the Muslim world he is on their side, Obama said, in his book, audacity of Hope," i will stand with the Muslims should the political winds shift in any ugly direction."