“The Obama administration sought to expand its $50 billion plan to reduce home foreclosures, announcing a new program on Tuesday to help troubled homeowners modify second mortgages or piggyback loans. Under the new plan, the Treasury Department will offer cash incentives and subsidies to lenders who agree to substantially reduce the monthly payments on second mortgages or forgive those loans entirely.” (New York Times ^[1], Wednesday)

Double whammy: bailing out borrowers and lenders with money conjured from thin air.

FEE Timely Classic
“Free Money Is Sound Money” ^[2] by Hans F. Sennholz