While some underwater homeowners were saved by federal reserve policy, the main beneficiaries of this stealth bailout were the banks.
The populace was sold on quantitative easing and mortgage interest rate stimulus as a measure to save "Main Street." It was said this money pumped into the economy would create jobs, and the combination of jobs, increased incomes, and low mortgage rates would cause a boom in housing which would elevate loanowners above water. What was sold as a big benefit to Main Street devolved into another massive bailout of the banking industry with few tangible benefits to the people the programs were ostensibly designed to help out. Proponents of these policies can point to the rapid increase in house prices since 2012 as a sign of success. While it's true that many loanowners have emerged from beneath their[READ MORE]