The mortgage debacle

And how to know if the government fix is the right thing.

This article points out some restrictions that need to be included to avoid just pushing the problem out for a few years.

I got into a discussion on how this all started with a 'Progressive' yesterday. I said it ALL BEGAN with a 'fix for Redlining'.

Well, THAT started it.. you'd have thought I brought up Darwin at a Holy Roller convention. I got treated to a litany of 'greedy corporate' abuse examples and didnt even have a chance to say "Exactly!".

She probably wouldn't have acknowledged it, anyway. The point is that there are VERY few legislative fixes passed that SOMEONE cant make a pile of cash from.

And sometimes the simplest things are NEVER done because it would mess up someone's bag of tricks. For example: Enron. does any know of a simple securities rule stating that all financial reports must be stated AS OF MONTH/DAY/TIME... say midnight First Day of Month?

Back to the subject: Mortgage qualifications were eased to promote low income ability to borrow to own their own houses. But the mechanism... spreading the risk.. as well as allowing 'creative financing' is what got us where we are now.
The author in that link points out, for example, that second loans and lines of credit should NOT have been allowed.