robert.b.ferguson

Fannie & Freddie Are Here to Stay

Very good analysis. The thing to avoid here is keeping property values artificialy high. Look wahat happened in Japan when they tried it. One could make the case that mortgages taken out by folks who were intending to live in their over priced houses should be refinanced so as to be solvent. Those mortgages that were taken by speculators should go into forclosure hopefully teaching a lesson on thier way to the auction. For example on this mornings news: a family got thier house completly refurbished by the television show extreme makeover home eddtion. After the makeover it was worth $450K they used it for collateral to start a business that failed. now it goes up for auction and they are looking for a place they can afford. You can't save people from themselfs.