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Bailout Rerun

Recorded on June 21, 2011

From The Heritage Foundation, I'm Ernest Istook.

The newest bailout is underway. This time it's a billion dollars—up to $50,000 each for an estimated 30,000 homeowners.

The $50,000 is structured as interest-free loans, but all can be forgiven after five years, so it's actually a giveaway.

The money goes to people who say their income has dropped by 15% and might lose their homes because of it.

But this billion is only the tip of the iceberg, because it's on top of another $7.8-billion federal bailout program for homeowners.

Some argue that since Wall Street, Fannie, Freddie, carmakers and others got bailouts, then homeowners should, too.

But most of us don't get bailouts—we pay for them. If we keep adding more giveaways for those who didn't get one yet, then we'll never stop. It's better not to start, and to put on the brakes and end these bailouts.

From The Heritage Foundation, I'm Ernest Istook.