Mortgage Forgiveness? Forget It

"As a Reuters blog ("An August Surprise from Obama?" ) wrote, a mortgage-forgiveness "Hail Mary" pass could put hundreds of dollars a month into pockets of some of the 15 million underwater homeowners with negative equity totaling $800 billion. That would come 100 days before November's election in which Democrats face even bigger than usual midterm losses with President Obama's approval ratings languishing at lows. All without additional "stimulus" funds that would expand the federal deficit.

Sounds like a great idea, win-win for everybody. Except for the unfortunate principle of economics known as TANSTAAFL—There Ain't No Such Thing as a Free Lunch."