By JLP | August 26, 2011
All these different bailouts are getting old. Here’s the latest. The details are vague:
One proposal would allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent, according to two people briefed on the administration’s discussions who asked not to be identified because they were not allowed to talk about the information.
…Despite record low interest rates, many homeowners have been unable to refinance their loans either because they owe more than their houses are now worth or because their credit is tarnished.
I almost think we would have been better off had we just allowed foreclosures to happen and let the housing market capitulate. I think all this government involvement has only made things worse by stretching out the inevitable.