Look out, this one could cost a lot of money!

The Treasury announced late today that it was considering a plan that would push the rate on a 30 year fixed rate loan down to 4.5%. They plan to do this by committing to purchase mortgage securities from lenders at a price equal to the 4.5% rate. The funds would come from, where else, government borrowing. The WSJ article points out that this could be a real money maker for the government since their cost of funds is so low right now.

You may want to read the entire article. Personally, I’m reeling from the faulty logic and simple fallacies that it contains. Hopefully, the writers were just tired and got taken in by the government’s spin.

This one is going to be put aside and worked on a little bit. Any comments or ideas would be most appreciated.

more: here