Saturday, December 08, 2007

No Long Term Fix

President Bush is mistaken if he thinks he--or Congress--can "fix" subprime mortgages. Force banks to give people, even a few people, a lower rate than agreed on and you set a precedent for abuse. While their situation is unfortunate, borrowers are not victims. If you treat them as such, years from now they will gamble as though they cannot lose.

AP paradoxically called Bush's plan a "no quick fix" but it's the long run that could prove more disastrous. Give a man a Pinto and he will drive like a saint. Give him a tank and he'll drive like however he wants.

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