Give Bush Credit For Subprime Plans

Everything that Bush suggested Friday morning to address the subprime woes seems sensible to me. It may not be enough and it comes late in the process. Only now are we asking Hank Paulson to look into what happened? Sheesh.

We could have done that at the beginning of August. But better late than never. There's nothing here that will, in the end, stem the tide of foreclosures that's coming but at least Bush is taking some sensible steps here, especially allowing the FHA to insure homes for delinquent borrowers.

The real action is in Bernanke's hands. I've long argued, before the subprime crisis, that he could cut rates. He should. It won't send inflation into orbit. If it's coupled with tougher regulation of the subprime market it won't send a signal to the markets that they can always expect a bailout.

Hard to tell from his speech in Wyoming Friday exactly where he's heading. The statement that the Fed stands ready isn't the same thing as a cut. But let's hope it is.

Comments

[npeters338@...:]

Our first MBA president has done something right? Time will only tell. Just about everything that incompetent has done is wrong. Let's wait to see if what he has done has any impact whatsoever. Don't forget Bush is the brain behind Iraq, Katrina, Harvey Pitt and Social Security reform. A veritable moron.

2007 Sep 04 07:09 AM

[inscrutable...:]

Mr Cooper, are you a troll masquerading as an informed commentator?
Otherwise, why say that President Bush should be given credit for subprime plans without saying why that should be the case?

Which element of the plan seems "sensible"? The part where he wants to guarantee loans for dilinquent borrowers or the favourable tax break bit?

Interest rates are far from being ridiculously high, either in absolute terms or relative to history. If you choose to take on a bigger mortgage than you can service or you chose to support an unaffordable lifestyle by unlocking home equity then why do you justify help?

2007 Sep 04 10:16 AM

[wixeywaxy:]

You are repeating the same baloney the politicians are spouting. Sub prime by definition is a poor quality investment for a lender and a probable bad entanglement for the borrower. Our bankruptcy laws add fuel to the mix and there are multitudes who have no conscious about cheating the lenders. Home ownership isn't an entitlement and it isn't the best for everyone. WW

2007 Sep 04 05:37 PM