August 25th, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today blasted an Obama Administration proposal to offer $85 billion of refinance loans for underwater mortgage borrowers:
"With homeowners underwater in their homes by about $700 billion, Obama's $85 billion of bailout-refinance loans will not address 88 percent of the negative equity that is out there. The whole reason the crisis began was because cheap loans were provided to those with poor credit. Now, the Obama Administration wants to return to this failed policy to prop up his sagging reelection prospects by directing the money to favored constituencies that took out loans which could not be repaid. This is nothing more than an $85 billion Obama-Reelect slush fund."