tag:blogger.com,1999:blog-6600547462620775535.post8299353975716233590..comments2008-09-30T09:07:22.318-05:00f.f.http://www.blogger.com/profile/15189780903818004615noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6600547462620775535.post-49183037589995291212008-09-30T09:07:00.000-05:002008-09-30T09:07:00.000-05:00One challenge I have with a bailout is if they DON'T have a REQUIREMENT that the lenders MUST renegotiate existing home loans (even those in some stage of foreclosure). Frankly, a lot of the issue comes back to badly structured mortgages. Although many foreclosures are related to lack of income (jobs drying up or other large bills eating up the money) a large portion of the problem is due to inappropriate loan structure and frankly some people shouldn't have qualified for anything at all. At this point even if home values don't support the amount of debt, the lenders and investors are better off restructuring mortgages so they get payments than letting the consumers foreclose. That's a more fair way to prop up the financial industry and it actually helps the little guys (read us taxpayers). If homeowners don't foreclose, values become more stable, investments based on packages of mortgages become more stable, the banks have more payments coming in again and there is less that the taxpayer has to pay for. Of course, this is just one part, but my goodness are they just ignoring this area or just downplaying the importance?TheWeyrd1http://www.blogger.com/profile/15064826219629525527noreply@blogger.com