| Sure it's political. But that doesn't mean it's not reinforcing bad spending habits and sending the wrong message.
There's a generation of Americans who believe it's OK to spend more than they make and somehow a fairy will sprinkle stardust over their mortgage contract and everything will be peachy.
When the Japanese bubble burst in the late 80s, you didn't see the central government in Tokyo softening the blow to speculative landowners who lost their shirts. They didn't reward greed -- it was a tough lesson, but they're better for it. Nor should the US government reward this behavior.
Fcukin softies. We all pay for it.
^the borrowers gain in "no mortgage increase" despite what their contract said. The lenders still get either a mortgage payment or these houses that are dropping in value. |