As a ‘learning experience,’ the current recession and its associated housing bust haven’t produced many enlightening moments for our policy makers in Washington. Nothing makes that more obvious than the news that delinquencies and foreclosures are rising rapidly among mortgages insured by the Federal Housing Administration, whose reserves have fallen below acceptable levels. The agency’s losses, which are almost entirely on loans made after problems with Fannie Mae and Freddie Mac were already apparent in the current bust, may require (guess what) a new taxpayer bailout…..more HERE.