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Boy, this Democratic congress makes it pretty hard on its defenders when they do stuff like this.

So basically, the FHA insures mortgages as a means of encouraging homeownership in neighborhoods where lenders might otherwise not lend. By assuming some of the risk, they lower the cost of loans and allow lots of working class folks to own their own home. So what are they doing now? Increasing the limit on the size of the loans they’ll insure up to $650,000! This is flat out a government subsidy into the hands of upper middle class and wealthy homeowners. Period. And it has absolutely nothing to do with stimulus. Wow.

I know everyone’s focused on the presidential election right now, I think progressives have to do some very long, deep, sustained thinking about why this congress has been such a failure.