FHA struggles

I read in the Wall Street Journal today that the Federal Housing Administration's cash reserves have fallen so low that there is a close to 50% chance the agency could run out of money and require a taxpayer bailout in the coming years. There are deals going on right now to try and increase the FHA's loan limits but the agency is clearly struggling. This is administration is a crucial source of loaning for first time home buyers. It doesnt make loans directly but it insures loans against defaults and gives people security. Some experts predict a $50 to $100 billion dollar bailout will be necessary.