From Of Two Minds:

President Obama is taking credit for a new government plan to "save homeowners." That is, of course, pure propaganda to mask the plan's true goal: the perfection of debt-serfdom. The basic thrust of the plan is straightforward: encourage "underwater" homeowners whose mortgages exceed the value of their homes to refinance at lower rates.

The stated incentive (i.e. the PR pitch) is to lower homeowners' monthly payments via lower interest rates.

This is the Federal Reserve's entire game plan in a nutshell: don't write off any debt, as that would reveal the banking sector's insolvency, but play extend-and-pretend with crushing debt loads by lowering the cost of servicing the debt.

The key purpose of this "plan" is to leave the principle owed to banks on their books at full value while ensnaring the hapless debt-serf (the "homeowner") into permanent servitude to the banks.

If the net worth of your home is a negative number, then what exactly do you...

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