Review & Outlook: The Latest Taxpayer Housing Bust – WSJ.com

Yet it’s worth recalling that when we warned about FHA’s troubles in September 2009, we got an accounting lecture from HUD Secretary Shaun Donovan and a letter from FHA Commissioner at the time, David Stevens, that we were “just plain wrong.” He added that, “I can say undoubtedly that the FHA fund is playing a key role in the housing recovery and poses no immediate risk to the American taxpayer.”

Taxpayers will “undoubtedly” be pleased to know that the threat wasn’t “immediate” but arrived a mere three years later. Can taxpayers claw back the salaries of Messrs. Donovan and Stevens the way Congress has tried to do with those of financial CEOs?

via Review & Outlook: The Latest Taxpayer Housing Bust – WSJ.com.

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