The democrats are trying to move away form the “Public Option” and towards something called the “Co-Op” option!
This new contraption would, from what I understand go something like this:
1) The government fronts your money to get this started. The proponents said and I quote “the money may or may not ever get paid back”
2) The uninsured or who ever wants to join the program will do just that -so far I haven’t heard of any restrictions.
3) The program then flies on its own run by its members as a quasi-governmental agency.
Well the problem is that previous quasi governmental entities are exactly the ones responsible for “the worst recession since the depression” ( that is of course a White House quote).
Fannie Mae, Freddie Mac, Ginnie Mae and there are others that I can’t remember just now, are just the sort of quasi governmental organizations that the Co-Op option that would become.
The results are ominous. Ginnie Mae is getting bailed out by your money becasue it is bankrupt. Similarly Freddie Mac and Fannie Mae have also gotten bailed out by your money.
Of course the Jamie Gorelick , the person most directly responsible for not stopping 911 and then awarded with the Vice Chair of Fannie Mae never had to return the tens of millions of dollars of your money that she awarded herself as she helped bankrupt Fannie Mae and destroy the housing market
Right now the government is just about the only institution lending mortgate money. I am not sure what percent of the residential mortgage market ins dominated by the FHA buut its probably well over 95%
That will be the end result of the Co-Op option! They will bankrupt everyone else and dominate the market in a very very short time thus becoming again “the public option”