It’s this kind of partisan economics that doesn’t allow me to be a Democrat, even though I’ve said goodbye to the Grand Old Party. In fairness, it’s only a Beltway rumor, albeit a very prominent one, but still, the implications are so mind boggling that it borders on lunacy.

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion.

The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie.

– James Pethokoukis, Money & Politics columnist for Reuters

This isn’t a true Main Street bailout. If it were, it would benefit all of Main Street, rather than the 20 percent of folks who:

1. Needed a place to live and, either honestly or foolishly, bought at the wrong time. Either way, socializing stupidity is a dumb idea and these folks should have checked the historical price of home values in their area to made sure they weren’t buying an asset that had doubled (or more) in value in just four short years.
2. Used low/no down payment mortgages or liar loans as option contracts in a poorly conceived real estate investment schemes because the fear of not making money overrode the fear of losing money.

In my opinion, this is nothing but economic catnip to ameliorate the effects of a debt enslaved culture, and the Democrats predictable attempt to pander for votes from the middle to low income voters in the upcoming elections now that President Obama’s approval rating is in the crapper.

[Can you tell I'm tired of traditional American left or right, two party politics?]

But what I find so infuriating, is when does the government sponsored bailout of piss poor decisions end? If this “Main Street real estate bailout” actually happens, maybe I should call my Congressman and ask for a bailout of the cash I lost when the tech bubble collapsed.

Surely, you ladies and gents don’t mind paying for the money I lost buying Cisco Systems at the top. Do you?