Mortgage crisis presents many problems

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The U.S. Senate quickly and overwhelmingly passed a costly bill addressing the mortgage crisis.

It has money to help the banking industry, which was the perpetrator of this crisis. It would give builders help at a time when there is a huge unsold inventory. That would almost certainly add to that inventory.

It may try to help those whose house is now worth less that their principal, but how does that problem differ from that of an investment in a stock which is now worth much less than what was paid for it?

It would offer buyers a $7,000 credit to buy a foreclosed house, but why not do the normal thing with an unsold house, of lowering the price to a level that would find a buyer? Auctions, anyone? So what if that hurts the mortgage holder?

If it is possible to enable a recent buyer to convert the expensive variable interest mortgage to a conventional 30-year mortgage, I'd say go for it. I see nothing justified beyond that. Talk of writing off part of the principal ought to be rejected out of hand.

Congress must resist the temptation to just do something, but to take the time to do something sensible. Since our federal government is running huge deficits, all they spend to solve this will add to that big deficit. That just transfers the problem to our heirs!

Victor Reilly, Aiken, S.C.

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LaTwon 04/22/08 - 08:29 am
I believe that banking

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson

soldout 04/22/08 - 10:49 am
The Bible said the debtor is

The Bible said the debtor is a slave to the lender. Some of our pastors told us to get out of debt. Dave Ramsey tells us to get out of debt. At one time your house payment should be 25% of your take-home pay but everyone decided we were smarter than those who had gone before us.
With this mess, once again we believed the lie from the devil that we are smarter than any other generation and the Bible surely doesn't relate to today. Technical advancement doesn't mean wisdom advancement. If we all seek wisdom we won't take part in this problem, recessions or what ever comes down the road.

The Knave
The Knave 04/22/08 - 05:26 pm
The devil made-em-do-it!

The devil made-em-do-it! Just do a little bible-thumping and all will be swell. Was it the devil that made The Shrub invade a sovereign nation, killing hundreds of thousands, maiming millions, creating five million refugees, destroying a country's infrastructure, and emptying out the U.S. Treasury? Whoops, I forgot, The Shrub told us that god wanted him to be pres-ee-dent, so I guess the devil's not on the hook for that one. Umm, I wonder if the devil told The Shrub to appoint Helicopter Ben to be Federal Reserve chairman, so that he could trash the dollar, and perpetuate roaring inflation, and the twin bubbles of housing and finance? Since god's watching over The Shrub, I suppose, once again, the devil couldn't have made-em-do-it. ---- "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts." (Bertrand Russel) ---- "I distrust those people who know so well what God wants them to do because I notice it always coincides with their own desires." (Susan B Anthony) ---- "Men become civilized, not in proportion to their willingness to believe, but in proportion to their readiness to doubt." (H L Mencken)

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