MORE ON THE FREEZE

I found an article that was written in the National Post. I am pretty sure that is a Canadian Publication. It spoke of the Moral hazards in a Bush bailout. It was another article on the recent rate freeze put into place by the Bush Administration. I would not be surprised if you are just not totally absorbed in the sub-prime rate freeze news but I think this article does bring out some interesting things to think about.

It speaks of the lack of respect for contracts, the political side of the bailout, and it does bring up a good point that if you bail out those who don't deserve to be bailed out, is a lesson going to be learned?

I have not read any article as yet that gives any hope of the rate Freeze working. The good news is that the delinquencies are mostly in sub-prime rather than prime loans and it seems pretty clear the problem is based in the adjustable rate sub-prime loans. That tells me that when the mortgage lending industry gets back to basics that basics still work. From my chair at least it looks like we are back to basics. The free market has taken care of that.

Do morals or the lack of have anything to do with the problem or was it just a lot of greed and profiteering in the something for nothing society we seem to have today. Come to think of it the lack of morals may have more to do with it than we think.

http://www.nationalpost.com/news/story.html?id=156965

More to come

Lonny