Prudent Man CFA

Hedge Funds Threaten to Block Mortgage Modifications

When is a contract, the legality of which is the bedrock of all business transactions, a contract? The prevention of monetary loss is not in the country's best interest as is the war on terrorism.

If people make bad bets they must live with them. Ask anyone who has had a bad marriage. You cut your losses and live for another day.

What seems to have been lost here, but it isn't to trial lawyers, is civil liability. If one is defrauded he either goes to criminal or civil court for redress. We don't need new laws and bigger bureaucracy. If the government, Administration and Congress, would have made it clear that no one would be bailed out this situation would have corrected itself. No one, to my knowledge, was at mortal risk. President Bush, in 2007, implored individuals who were having difficult with their mortgage contracts to contact their lenders. I helped a neighbor do just that and she got her debt worked out quickly. Congress was silent until just recently and voice their opinions that everyone should have seen the problem but themselves. Does any in Congress and their expensive staff read the paper?

It appears to me that Congress, who has made terrible legislation the past fifteen years by allowing Wall Street to peddle junk to pension funds and other investors, wants the Administration and the taxpayers to bail them out for their mistakes and Sen. Dodd and Rep. Frank refuse to do what Greenspan has done, admit they screwed but of course their campaigns profited dearly from their malfeasance. As Rep. John Mica (R. FL) said last week at the a House meeting, and I paraphrase: We must clean up Congress and affix liability to those politicians who profited from the mess our financial systems are in. A good start for a demand for Congressional Term Limits as we have seen what petty politicians can do to destroy Free Enterprise as well as personal responsibility.

Barney Frank and Chris Dodd (like his father) should be removed from office and if it is found they profited illegally from the powers of their offices should be prosecuted to furthest extent of the law. Congress is where the mess began and they should be held accountable as we mortal souls are.