Mortgagors Rock, Uncle Sam Does Not

A few short years ago outstanding U.S. mortgage debt had Treasury borrowings beat $10 trillion to $9.5 trillion. But not so anymore. Uncle Sam owes $15 trillion on his tab while consumers have whittled down their mortgage debt to a mere $9.2 trillion. (The latter measurement is courtesy of NMN's Quarterly Data Report.) Of course, it should be pointed out that some of that whittling came at the expense of borrowers losing their homes, and therefore their mortgages. But as Freddie Mac's research department keeps telling us: consumers increasingly are engaging in cash-in refinancings. Mortgage firms that are counting on servicing income should not lose any sleep over the fear of not having a future. In time (when the economy improves) U.S. consumers will begin borrowing once again, driving up the nation's mortgage bill. As for Uncle Sam, there's only two ways to cut the debt tab: raise taxes or cut spending. Or do both. Currently, there is no political will in this nation to reach a compromise over this issue. As President Lincoln once told the nation: “A house divided against itself cannot stand.” Election day is 11 months away…