The financial crisis is a liquidity crisis, yes, but it is ultimately a product of homeowner failures to pay. Unless this fundamental problem is fixed, we will continue to see -- and need to treat -- the symptoms. The proposed bailout ignores this. Yet the sum being demanded from taxpayers is almost certainly more than sufficient to pay off all currently delinquent mortgages. Full Story »
Posted by Kaizar Campwala
It would be especially unfair to homeowners who have already lost their homes. But life isn't fair I've found. And this strikes me as a better solution than the one now being considered. It's also the one I suggested to my representative over a week ago. I don't expect Congress to listen to professors Koppell and Goetzmann any more than they listened to me.
This was written by professors. Wow! Does purchasing or paying for homes increase trust in the banking system? The system has almost frozen and the problems are multiplying and this proposal will not help quickly as needed.
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