The Non-TARP Bailout

Were TARP funds used anywhere to buy, and thus own "toxic assets?"

This Kling comment is not very "Klingian."

And, don't forget the losses at Fannie and Freddie, and other losses that the Federal Reserve will take before passing them quietly onto the Treasury as a reduction in Seniorage.

From the link:

" A first order of business for the new Congress should be to correct this error by requiring that the FHA and other government mortgage lenders abide by reasonable mortgage lending standards."

If the new GOP House is really interested in limiting government spending they will follow this advice. I doubt they will.

It is no secret that most new mortgages have federal backing. The GOP would rather talk about tax cuts and earmarks then do anything that might hurt home prices.