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| All good points. But like the Iraqi war, we are here now and what do we do from this point forward? Are we gonna cut and run and let the chips fall where they may or are we going try to adapt to the circumstances and try to make something out of nothing. We are likely to damage the housing industry which all ofus will pay for one way or the other.
It seems to me that the best way is to restructure mortgages to longer terms,thus make the payments more afforadble. The lender still has the loan. The borrower still has the debt and there need not be a bailout. It's working things out to make the best of a bad situation. Needless to say we need to establish tighter regulation on loan providers and what qualifies for financing. Bankers ought to able to discern which borrowers are worthy and which ones are not. And borrowers need to learn that you should'nt borrow money soley because you can. Credit availability, does not mean you should borrow it. It does not mean you have the ability to pay it back.
I think people need to know that borrowing a hundred dollars requires a principal repayment of $130 dollars in pretax income plus interest. Most debt needs to be repaid out of after tax income and bankers and borrowers both need to know that. | |
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An Excellent Comment-Sez it all.
