Sub-Prime Borrowers Need Help !
Indeed, two top Democrats have already put forth ideas on how to help Sub-Prime Borrowers. Senator Hillary Clinton, who's running for president, wants a federally mandated "foreclosure timeout." Senator Christopher Dodd of Connecticut, chairman of the Senate Banking Committee, also favors steps to protect homeowners from foreclosure.Most economists are skeptical. They're afraid that if government steps in to bail people out of bad decisions, it will set a dangerous precedent. Borrowers will be even more likely to throw caution to the winds the next time because they'll be confident that they won't have to suffer the consequences if things go wrong. In economics lingo, this is "moral hazard." What about people who were misled by unscrupulous predatory lenders? Well, the free-market economists say, it's too bad for them, but people won't be so trusting next time if they see what can go wrong.
How can the government stand by while people get thrown out on the street because they can't make their mortgage payments? Please Post Your Comments or Solutions on How to Help SubPrime Borrowers ..... Thank You and God Bless !
posted by RefinanceGuru @ 9:32 PM
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