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Re: Government aid for US mortgages

Robert Manning wrote:

<snip> 

The investment risk of peaking US housing market prices (buttressed by
historically low debt service levels) is globalized through the sale
of these mortgage-backed securities in international markets such as
London and Japan.  Hence, low interest rates fuel higher home values
which contribute to the consumer borrowing cycle via higher home
equity loans which are deductible from Federal income taxes.


Doesn't this kind of  sound like a Ponzi scheme?

Paul  P

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