Holding down the mortgage rates is the only decent idea the GOP has offered. If we give our tax dollars to the banks, they make the profit off the interest and an charge higher rates to the borrowers. Better for the government to cut out the middleman. WSJ is wrong because they ignore that the adjustable rate mortgages shot up and triggered the first round of defaults. With a lower rate, those people could have kept their homes, rather than selling them and create a glut, depressing prices. What Congress really needs to do is cap the interest rates on credit cards to something less than what the neighborhood loanshark charges.
Holding down the mortgage rates is the only decent idea the GOP has offered. If we give our tax dollars to the banks, they make the profit off the interest and an charge higher rates to the borrowers. Better for the government to cut out the middleman.
ReplyDeleteWSJ is wrong because they ignore that the adjustable rate mortgages shot up and triggered the first round of defaults. With a lower rate, those people could have kept their homes, rather than selling them and create a glut, depressing prices.
What Congress really needs to do is cap the interest rates on credit cards to something less than what the neighborhood loanshark charges.