A widening government bail out of mortgage industry.

December 24, 2007

An article about how the government should do more than it is planning on to stop a recession that many think will be as bad as the early 80’s (I fear a 30’s style myself).

They want people to have their ARMs extended for a period of time.  How they do this is of greatest concern to me.  Do they bail out the banks?  I think they should bail out the home owners.  It was the banking industry that caused this mess and they should only be spared with harsh words of a naughty 3 year old.  The worst in the bunch should be shutdown and the others forced to meet higher lending standards.  Yes higher standards would restrict money supply but it is a necessary evil obviously and should improve investor confidence.  I wouldn’t invest in Mortgage backed securities now if my life depended on it.

E

http://news.yahoo.com/s/ap/20071224/ap_on_an/mortgage_crisis

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