The Saint

Nationalization of the U.S. Mortgage Problem

Inevitably the US federal Reserve must act to prevent the closure of hundreds of 'corner store' banks and mortage companies having allowed them to unreasonably and irresponsibly lend to borrowers who a prudent banker would have known had not the slightest chance of repaying their loans in the event of an interest rate rise.

Falling asset (read: house) prices and interest rate rises produced the outcomes small borrowers, mainly in the mortgage belts, arefaced with today.

There is a fundamental defect in the thinking of most Americans who cannot see opportunities in the current market. Instead of running scared and running away from the problem, many who abandon their mortgages and homes with it, could well cluster together and create another pool from which they would be able to resurrect their failing fortunes and it is not rocket science.

If there is anyone out there interested in how it is done, we need to set up chapters in each suburb of each city. Because in the end there are also opportunities to secure government funding not to bail out a failed institution, but to support a thriving one with the capacity to inject new confidence into a sector of the economy that underpins the rest of the US economy.