FHA Next Taxpayer Bailout Candidate

Confirming the government is hapless in its operations and ability to function in any responsible manner, the FHA, which had boasted in the past of being “the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing,” is now poised to be the latest government agency to require a bailout.

FHA data show that the number of single-family loans insured by the FHA that are 90 days or over past due jumped to approximately 739,000 in September. That's over 9.5 percent of all the loans guaranteed by the government agency, which backs up $1.08 trillion in mortgages.

The failing Federal Housing Administration has had its capital reserves plunge into the negative, falling to minus $16.3 billion.

Reserves required by the FHA are required to stand at 2 percent, and which based upon its portfolio, should have capital reserves of $22 billion.

As it stands with those numbers, the FHA must have a cash infusion of about $38 billion to meet its requirements and remain solvent.

With very little if any catalysts on the horizon, it appears the problem for the FHA will worsen as the number of people behind on their loan payments soar.

This should be another impetus behind the ongoing rise in price of gold and silver.