Saturday, August 21, 2010


It took a government program to prove that throwing good money after bad is a dumb thing to do.  The HAMP program failure rate is almost at 50%:

Approximately 630,000 people who had tried to get their monthly mortgage payments lowered through the government program have been cut loose through July, according to the Treasury report. That's about 48 percent of the those who had enrolled since March 2009. And it is up from more than 40 percent through June.

Any corporation that saw only a 50% success rate for a business strategy it launched would immediately either terminate the effort or fire the people who conceived it and revamp the strategy.  That ususally doesn't happen with government programs.  Calling this thing "Making Home Affordable" is wrong; it should be re-named "Making Home Unaffordable" because it prevents home prices from dropping to price points that renters can afford.  This boondoggle wil continue until a bond market revolt and run on the dollar forces it to collapse.