Quote from Random.Capital:
That's what the secondary market is for. It's not the banks that are locked in at that rate, it's (to a disturbing large extent) Fannie/Freddie who are on the hook.
Which means taxpayers are the ones on the hook.
For their own mortgages.
Which means all they've done is shifted time-shifted future projected earnings into the present.
This circle of invirtuosity will be broken, as it is fundamentally unsustainable. The only question is if voters are smart enough to take their hand out of the cookie jar, or if the jeep has to go over the cliff before voters have their "oh shit" moment.
