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Thursday, December 06, 2007


That's a good question, and one that has to be balanced with "how do you protect homeowners with a legitimate beef?" and "how do we do it without wrecking the little house of cards our entire speculative financial system is based upon?"

The only reason to freeze rates is that banks can find a way to shore up their assets. Period. All it does for homeowners is delay the inevitable. And the declining housing market means they're just losing money.

The big problem on the consumer side is all those people who didn't realize they couldn't just walk in and refinance their mortgage. They didn't read the fine print.

Hell, The Mrs and I are pretty astute, yet had to call our lender to make sure our 7-23 was all good. It is (they're local and very, very trustworthy).

The broker side has YSPs. People think brokers are working on their behalf and never know they're being screwed.

And then, of course, Wall Street, which has always needed rich people to work like it should. Well, they found a way to make billions off of poor people, and too many people decided they wanted a piece, failing to realize there wasn't enough for everyone.

Or, like you posted, "greed."

Now, I absolve a lot of homeowners who just got rooked by some sleaze, or like most Americans, simply lack the financial knowledge necessary to make such a big purchase. FinEd should be MANDATORY in all high schools and colleges, but not sure the powers that be would want that. /snark

Oh, and the ones who flipped houses -- which will be easy to separate due to public records -- can rot.

Sorry for the thesis ... :-)

All good points Mark. I've harped in the past that one of the reasons so many people do get duped is they get an inadequate financial education in school.

There are actually a number of different plans people can qualify for besides this rate freeze. HopeNow is only one of them, there is a FHASecure, Mortgage Relief Fund and other. You can easily figure out what
subprime relief program
a home owner can qualify for.


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