Borrower is hit twice!

"Without naming BlackRock, federal auditors have warned that any private parties that purchase distressed assets on the government’s behalf could use generous federal subsidies to overpay, artificially pushing up the price of similar assets that they manage for their own portfolios.
“'In other words, the conflict results in an enormous profit for the fund manager at the expense of the taxpayer,'” Neil M. Barofsky, the special inspector general for the Troubled Asset Relief Program, wrote in a report last month." New York Times 5/19/09
The borrower is hit twice. (1) His taxes increase to pay for the federal program. (2) The federal program raises the "value" of his loan so that the bank is less willing to reduce the interest rate (it is no longer a "toxic" asset). Voila. Higher taxes and the same high mortgage payment.
Why are we picking on the U. S. home owners? Just reduce all mortgage rates now.