Another taxpayer-subsidized federal program may be going broke, reports the Atlanta Journal-Constitution, after incurring $20 billion in debt from recent storms.
Set up to provide coverage for homeowners hard-pressed to find coverage elsewhere, the federal flood insurance program is reportedly finding support in Congress for extending its underwriting coverage to
some of the riskiest -- and potentially most valuable -- properties in the country.
Not everyone, of course, sees taxpayer-funded moral-hazard as a benefit.
You only have to look at 300 miles of Katrina and Rita wasteland to see that bankrolling federal flood insurance in high-risk areas is just asking the American taxpayer to flush money down the toilet," said Oliver Houck, director of the environmental law program at Tulane University in New Orleans. "If people want to build out there, that's one thing. But to build out there with federal support is insane.
Another example of your government hard at work -- throwing your hard-earned money away.
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