Len,,,respectflly disagreeing here with your thinking that bailing out subprime borrowers will help remedy the situation...It will delay the efficiency of the free market system to work thru the excesses that were created with unconventional mortgage lending practices of the past few years...
To clear out bad debt the repossession process must be allowed to move in the swiftest manner that it is capable of to work out the excesses in the market regardless of what caused that particular situation...
There are strong banks within the banking system...But they didn't remain strong by adapting leanient, unconventional mortgage lending practices that go against the proven system of writing paper in that business...This is a repeat of that thought from many months earlier...
The weak lenders will be given opportunity to cut losses at the price that stronger lenders consider to have a fair risk/reward ratio...The weak lenders now, were over the past few years, the aggressor and reaped the limelight of their practices until the law of averages caught up with their unproven sub-prime lending decisions...
Politics doesn't need to get in the middle of letting the financial system work as it should...Legislation to address the lending practices that have caused the big, current problems in the real estate lending market does need to be considered...And that should be the concern of legislators and could help bring more stabilty back into the lending markets as well...Imo only,of course...LJ
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