Atlas Shrugged: The Mocking

Thursday, October 30, 2008

Let Them Eat Rental Housing

Megan "Marie Antoinette" McArdle rejects a plan to help homeowners stay in their homes. She says,"Nor can the government do as some Democrats propose, and simply cram down the value of the mortgages, force a debt-for-equity swap, or one of the more exotic plans to make the banks subsidize homeowners in over their heads." Megan does not mention that just such a plan is recommended by Bernanke, for homes that owe more than they are worth. Those details might hurt her "argument." Why would Megan not follow Bernanke's advice now, when she was so very eager to follow his advice regarding the initial, open-ended bailout?

I'm glad you asked.

On the other hand, it [the plan Megan recommends] wouldn't do what a lot
of people want, which is to help people with unaffordable mortgages stay in
homes above their pay grade.

"Above their pay grade." Charming. Getting above themselves, were they? How dare the little people forget their place?

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