There were specific mortgage subsidies as part of tarp. For instance the making homes affordable and hardest hit fund programs.
But beyond that if the mortgages had been sold at market prices many of them would have been snapped up by companies that aggressively went after the secured properties. That’s the _natural_ outcome of letting the market action happen. More people would have been put out of their homes.
I’m fairly ambivalent on tarp. I think letting actors take risky actions and get bailed out creates a moral hazard. But that applies to mortgage holders who were over extended and auto workers who get bailed out ahead of other stake holders too. I can see a strong argument that we should have biased that way, but to say we didn’t help “regular” people is just false narrative.
But beyond that if the mortgages had been sold at market prices many of them would have been snapped up by companies that aggressively went after the secured properties. That’s the _natural_ outcome of letting the market action happen. More people would have been put out of their homes.
I’m fairly ambivalent on tarp. I think letting actors take risky actions and get bailed out creates a moral hazard. But that applies to mortgage holders who were over extended and auto workers who get bailed out ahead of other stake holders too. I can see a strong argument that we should have biased that way, but to say we didn’t help “regular” people is just false narrative.