A Heavy Price For 'Cheap' Mortgages

Washington's efforts to keep the housing market afloat are brew ing up another mortgage melt down -- except that this time, Uncle Sam will start off holding the bag.

Mortgage rates hit new lows last month as investors gobbled up residential, mortgage-backed securities -- MBSs, the very financial instruments that triggered the subprime crisis.

Short-term, that will allow many cash-strapped homeowners to refinance and lower their monthly interest payments -- help to the beleaguered housing market. But it represents a ticking time bomb -- which will blow up in the face of the taxpayers.

Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/heavy_price_for_cheap_mortgages_rt9bXdx4aXYYX4NUf0NjaO#ixzz0tIb2lcw9

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