Why Ronald Reagan said the most dangerous words in the English language are, “We’re from the government and we’re here to help.”
To the state:
Congress is moving to approve $343 million in additional Medicaid funds for the state and $300 million for local school districts. This temporary assistance is less than state budget writers expected, but sets up a bigger whole in budgets next year, even though tax collections aren’t likely to improve much.
To bankers homeowners:
The Treasury Department is sending $159 million to the NC Housing Finance Authority to help unemployed workers avoid foreclosure. This goes beyond the lunacy of throwing good money after bad. It will provide new loans of up to $36,000 for 36 months to as many as 7,200 homeowners. After that, the homeowners will have to resume their mortgage payments and pay back their government loans.
