Obama's Mortgage Rescue plan is only going to make things worse. For every Octomom family that it rescues from greedy bankers, a dozen other families will find mortgages priced out of their reach. Since it imposes additional costs and risks on mortgage providers, fewer new mortgages will be offered.
Why would a bank - any bank - take the risk of offering a mortgage? Consider that our government provides finding for ACORN, which will now use civil disobedience tactics to prevent foreclosures. It is far safer to invest in Chinese coal plants. The Chinese economy is troubled too, but at least in China there is a government that is willing to support investors.