Ask your favorite politician "Why do we need a bailout?".
The answer we are getting is that there are too many foreclosures.
Oh, so you mean banks are using the Mortgage Insurance Premium known as PMI (Private Mortgage Insurance) that they charge to anyone that has a mortgage balance of more than 80% of the home value, to offset their loss, and have run out of money?
The dirty little secret of PMI is that the premium that homeowners pay, does not go to an insurance company, it goes directly to the bank. Effectively increasing the banks profit margin without making the bank disclose a higher "interest rate".
PMI is what was SUPPOSED to make it so we would not need to bailout a bank.
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