Return to the Free Liberal Homepage

« Debt-Mail, All Over Again | Main | Anarchy Works? »

The Housing Bill

I have two comments on the Housing Bill.

The first is that the adjustable rate loans were, in many cases, designed to encourage flipping houses in an ever expanding market. Flipping benefits the financial sector because the new buyer pays the full range of closing costs. The end of the housing bubble stopped the expected flips, leaving mortgage holders planning to flip in a few years holding the bag.

The second comment is that the unstated effect of this bill is to bouy the financial sector by allowing at risk borrowers to make new loans to replace the bad ones, while the stabilization of the housing market will allow people to sell who need to. Both instances will result in yet more fees to keep the mortgage industry well financed by still more fees.

Post a comment

Free-for-all (frfr-ôl) -- n. A disorderly fight, argument, or competition in which everyone present participates.

from Dictionary.com



Advertisement
Free For All -- The Free Liberal Blog