Saver: I’d really like lower house prices instead of “affordability” programs that just tell me to get deeply into debt.
Government: How about the nice mortgage debt interest deduction? The more you borrow, the more you save! But if you have no debt, then no tax break. Sorry.
Saver: You’re not listening. I don’t want debt. I just want your debt-mongering programs to go away, so I won’t have to bid against people committing financial suicide with debt. No saver can bid as much for a house as foolish borrowers can, borrowers who don’t care about their future bankruptcy.
Government: Say, have you considered what Fannie Mae can do for you? You can get a slightly lower interest rate on your debt since we have taxpayers on the hook in case of your default.
Saver: I still don’t want any debt.
Government: OK, we’ll increase the Fannie Mae conforming limit, so you can get whopping jumbo loans in California, and we’ll make Midwestern taxpayers cover it! Then you get hella deep into debt and the banks will be safe in case you default.
Saver: NO! I still don’t want any debt.
Government: You’re a tough nut to crack. OK, I’m going to hand you cash and say you borrowed it.
Saver: But I don’t want to borrow money!
Government: Too late, I just added your “stimulus” payment to your part of the national debt. Ha! Gotcha.
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