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I like that much of the pork has been stripped out, that there’s some form of oversight, and that there’s some protection by way of insurance. That said, I still shudder at the thought of the government doing this as I think it will set a terrible precedent, but at this point there’s probably too much momentum driving it to shut it down. |
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Written By:
Ryan
URL:
http://www.none.com
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Perhaps I’m misinterpreting it.
But couldn’t the insurance mechanism be perverted to be a way to subsidize bad mortgages. In other words, you bring the risk of a bad mortgage to parity with a good mortgages. When the bad mortgages go bad, they dip into the insurance. Good mortgages pay a lesser premium, but because they more numerous and almost never default, they use only a tiny fraction of what they are required to pay. |
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Written By:
jpm100
URL:
http://
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I disagree in principle having a government bailout, but what is the alternative. The regulatory system has failed, those who saw this coming did not press the issue to the extent necessary a waken America, many politicians were effectively bought off by Fannie’s and Freddie’s campaign contributions with those same politicians still in leadership positions, and most Americans were content with a system that let them purchase a home with no down payment, closing costs rolled into the loan and many times interest only payments so they could “afford” more home.
After being forced into the sub-prime market, the mortgage industry was very creative and just about everyone bought into it. The 1977 Community Reinvestment Act started the ball rolling toward this financial meltdown when home ownership began to be thought of as a right by all too many politicians and citizens. So the march toward this crisis has been a slowly evolving; an almost unnoticed journey over the past 30 years.
The problem is to a large degree psychological. If nothing is done, in my opinion, we would see a resulting depression in more than one way. Not just the possible economic collapse, but societal aspects too. Can a society that has generally not had to accept sacrifice for two generations endure, without panic and the resulting anarchy, a continuing financial market meltdown and the resulting economic nightmare? I don’t think so; an opinion from a pre baby-boomer.
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Written By:
amr
URL:
http://americanconservativeparty.org
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"But couldn’t the insurance mechanism be perverted to be a way to subsidize bad mortgages."
Like the current arrangement? Isn’t that what got us into this mess? Sure, get in touch with AIG. They will insure it. |
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Written By:
timactual
URL:
http://
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I wish I knew more about the Great Depression; it was my grandparents’ generation. But I concur with AMR that my generation will sell their souls before they’ll accept any decrease in lifestyle. There are still a few of us who were raised to view our current affluence with gratitude and wonder, but most of my generation will gladly give up their birthright of liberty for a mess of pottage. I simply cannot imagine what would happen to them if they were forced to cut back to a Depression-era or worse, a subsistence lifestyle. People think I’m weird because I know how to make my own cheese and could make clothes out of sheep and I don’t panic when there’s no cell phone service. They have no idea how people would survive if things got bad. |
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Written By:
Wacky Hermit
URL:
http://organicbabyfarm.blogspot.com
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