MORTGAGES

What do the bail-outs of first Northern Rock, and now Freddie Mac and Fannie Mae tell you?

First, that housing is such an important matter that our governments are prepared to pump in billions and billions and billions to stop the collapse. But if housing is THAT important why is the issuance of mortgages left to private companies whose sole purpose is profit when they know that housing is such an important matter that if they screw up the governments will bail them out?

Second, that somehow our governments can find those billions and billions and billions from somewhere. Were those billions and billions and billions found in the corner of a broom cupboard? If not, were they just created out of nothing? If so, why don’t they create even more billions and billions and billions out of nothing to make the world a better place?