And then the government decided that the taxpayers should foot the bill for the behavior of flippers, gamblers, fraudsters and stupid bankers

A sad day for all American taxpayers.

A sad day for anyone who made wise and ethical financial decisions.

A sad day for the free market.

And a sad day for your children, their children, their children and their children, who'll now end up paying for this disaster.

And to think, this is just the start. The bailouts are here HP'ers. The bailouts are here.

Housing rescue bill heads to Bush for signature

Here's why we cannot let the Bush Administration use $1 of US taxpayer money bailing out failed housing gamblers

Government is not the solution. Government is the problem. Especially this government, the most incompetent and fiscally reckless government in the history of the United States.

We will not let the Bush Administration or our corrupted congress spend $1 of our money bailing out failed housing gamblers. Not $1. You think hurricane Katrina had wide-spread fraud and a sickening waste of taxpayer money? Just let the government get involved in giveaways and freebies for the subprime crowd.

This report should make you sick. And for extra credit, look at the Federal tax section of your next pay stub, and think about where your hard-earned money goes. There needs to be a taxpayer revolution in the US folks. The government must be choked off. And we must elect leaders who promise to do just that.

The Bush administration now acknowledges it is trying to recover nearly $500 million from people who improperly received federal aid money intended to help victims of two deadly hurricanes, Katrina and Rita, along the Gulf Coast two years ago. It said the amount may increase further.

The government's newest estimate of improper aid represents $494 million FEMA paid to 134,000 people who were ineligible for the aid they received.

People claiming to live in as many as 162,750 homes that did not exist before the storms may have improperly received as much as $1 billion in tax money, the AP's analysis found.

A Government Accountability Office report released in February estimated between $600 million and $1.4 billion was improperly spent on Katrina-related relief alone. The GAO, a congressional watchdog agency, said money was used for guns, strippers and tattoos, among other improper items.

Moral hazard goes off the charts as banks and our goverment talk about voiding contracts and letting teaser rates continue

There are days when the fools in charge of our banks and our government do things so stupid and so short-term, you just have to shake your head in disbelief, and acknowledge the fact that we're run by monkeys. Monkeys trying to win the next election, monkeys trying to earn their next bonus.

This is one of those days.

Goldman Sachs' head Henry Paulson (oops, I mean Treasury Secretary) and the clueless Sheila Baier at the FDIC are due to announce a moral hazard toxic loan "bloodletting over amputation" plan soon.

This "keep your teaser rate" and "Vote GOP" plan would let people who stupidly got into loans and homes they couldn't afford keep their silly teaser rate (just until after Bush leaves office), and people who bought homes they could afford with fixed rate mortgages of course would get screwed in comparison.

Uh, two or three words come to mind:

Moral Hazard.

MORAL HAZARD.

MORAL F*CKING HAZARD!!!!

"Bank Failure" and "Class Action Lawsuits" also come to mind...

Treasury close to subprime aid plan

WASHINGTON (Reuters) - The Treasury Department is finalizing a plan with mortgage industry leaders that will hold interest payments steady for many subprime borrowers facing higher rates and possible foreclosure.

The mortgage representatives and regulators are focusing in on restructuring "2-28" and "3-27" subprime loans, which start with a fixed mortgage rate of up to three years but then reset to a much higher rate.