Cloward-Piven Spending Spree Continues

Obviously our economy cannot sustain still more government spending. But with grown-ups poised to take control of Congress, Democrats continue to shovel money in a frenzy, knowing that if they dig us into a deep enough hole, there will be no climbing out.

From the Wall Street Journal:

The Obama administration on Tuesday will launch its most ambitious effort at reducing mortgage balances for homeowners who owe more than their homes are worth.

Officials say between 500,000 and 1.5 million so-called underwater loans could be modified through the program, the first initiative to target homeowners who are current on their mortgage payments but are at risk of default because they have no equity in their homes. …

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Under the new “short refinance” program, banks and other creditors that write down mortgages to less than the value of the property can essentially hand off the reduced loan to the government. The process involves refinancing borrowers into loans backed by the Federal Housing Administration.

Readers will recall that Democrats meddling with the housing market through the Community Reinvestment Act is what caused the financial collapse of 2008 in the first place. But in case forcing taxpayers to pick up the tab for bailing out as many as 1.5 million mortgages isn’t enough to finish off the economy, Dems are preparing another “stimulus” package (although they won’t call it that):

If past experience tells us anything, the actual package, when announced will include some spending to placate unions and liberals who believe that the Obama stimulus was, in fact, too small.

Apparently Dems have already lost the leverage to push through massive $800,000,000,000 pork extravaganzas. Yet the bleeding continues. There will be a great deal of economic pain when the full reckoning comes for Obamunist profligacy. Fortunately for Congressional Democrats, they will be out of office by then.

On tips from John L and Varla. Cross-posted at Moonbattery.

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