A Fair Mortgage Plan Will Turn the Economy Around, Create Millions Of Jobs... And <I>Shrink</I> the Federal Deficit

The invisible hand of the market drove people with little credit to banks. Banks advertised continuous­ly about low-low rates. Developers built houses as fast as they could - on money loaned to them from banks, providing massive incentive for the same banks to get bodies into those homes via mortgage loans.



And as that was happening, wall street made huge profits bundling mortgages into securities­, in some cases, ALL of their profit was covered by the groups selling these fraudulent papers. No new mortgages - no more profitable fraudulent securities­. So what do they do about that? Push loan originator­s to approve everyone who comes through the door.



Meanwhile, apartment owners kept rent at a level not far off from where an introducto­ry APR would be, providing even more incentive for people to apply for a mortgage. Renters were faced with deciding between flushing money on rent - or get a home and hope that the economy stays strong so that they can meet the future payments. After all, if there was no reasonable cause for concern of default, the banks wouldn't accept their applicatio­n, right?!?



I find it hard to call those people "greedy." You can call them naive, fiscally undiscipli­ned, whatever - but if we're to call the wall street hoards "greedy," then it is totally unfair to use the same word on the people who gambled on home ownership in a climate that intentiona­lly glorified it and profited mightily on its easy attainment­.
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