cdg

We May See Mortgage Rates Fall to 3.5%

Other variables for the individual to consider are the mortgage interest deductions for a 3.5% mortgage versus what they are writing off with their current mortgage, and what the need for the write-off will be down the line depending on their income. Are those refinancing retiring soon, or in ten years? Do they have defined benefit plans working for them and can budget this new amount, making their monthly payments lower? The low rate sounds very appealing to many, but there will be "unintended consequences" to the banks if inflationary period sets in, as cited by others. Perhaps someone can develop a model for a 15 year fixed rate refinancing deal, and see whether that better suits borrower and lender both. There are benefits initially to individuals, but there can be problems for the system in the long term.

Is Madoff an Argument for or Against Regulation?

Excellent effort to explain the regulation concepts. There are indeed many "rules" in society and social activities. Can anyone picture a sports activity
with no line judge, referee, umpire, etc.?

The new economic world needs some serious revamping, and more understanding by the public about what is really taking place with their investments. While nobody is forcing you to invest in XYZ, those who choose to do so may not have all the information available to them about what they are really acquiring.

CDG

What Are Banks Supposed to Do? A Little Clarity Could Go a Long Way

I agree with most of the article. Would offer a suggestion that banks offer home refinancing opportunities to prime (A list) borrowers to get some new accounts on their books that have excellent chances of being consistently paid on time. Start with 4 1/2 % or 4 3/4 % loans to see WHO is out there.
As the author says, unintended consequences can sometimes provide guidance on the question of what to do now. Well, try my suggestion!