Unmitigated gall.  Nothing else can explain the hypocrisy.

On the heels of the grandstanding announcement to put Wall St execs in prison (“coincidentally” timed for the 10-year anniversary of the Bear Stearns collapse) The Commonwealth of Massachusetts – home to the outspoken Elizabeth Warren – announced a program to fund housing down payments with taxpayer funds.

MassHousing will allow buyers to finance 100% of the cost of a new home.  The Commonwealth will take a second lien position.  In the event of default the primary lender is paid first and Massachusetts gets its down payment back if there’s anything left.

Surely government incentives for private homeownership aren’t anything new.  Income tax policy allowing the deductibility of real estate taxes and mortgage interest has been around for quite some time.

The problem in the case of Massachusetts is the process.

Onerous land use and building permit restrictions constrain new supply.  The result is increased home prices and rents.  The greater Boston area, like many major metropolitan areas, is almost unaffordable to the average person.

Instead of easing restrictions that would encourage new supply the government is putting taxpayer money at risk.  If Wall St execs must go to jail should housing prices fall will politicians follow?

Intellectual dishonesty and selective memory are reprehensible.  Political rants about bank bailouts fit the bill.  Uncle Sam received every penny (including interest) of TARP funds lent to (and in some cases forced upon) the banks.  Treasury earned $12 billion alone on Citi.  The same can’t be said for GM.