You know how people, e.g. my landlord, bought homes with no money down, secured variable or interest-only financing....and then took out HELOCs to pay the mortgage?
It certainly worked, albeit for a fraction of the life of the debt.
Well, the Obama Administration is trying the same sleight-o-hand:
WASHINGTON — The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.
The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter.
Creating/printing money out of thin air....and then using that make-believe currency to reduce how much was created out of thin air???