Blowing bubbles

Today's NYT has another infuriating article about how the administration is bankrupting the FHA in a desperate attempt to prop up housing prices. As the article points out this sort of artificial support is pointless unless it is continued indefinitely in which case it will be a enormous fiscal drain on the government and cause vast over investment in housing. Kind of like European agriculture policy. Naturally Barney Frank who appears a complete captive of the housing industry is in favor.