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| Who Needs ID Anyway? | We Should Thank the Socialists |
Fixing the mortgage crisis, but how?
by Christopher Chantrill
November 05, 2007 at 3:57 am
NOW THAT the mortgages are well and truly melting down the experts are gathering to offer advice.
Here’s Josiah Baker, professor at George Mason University, with his ideas.
The mortgage crisis requires legislation that supports punishing existing lenders for poor or misleading businesses practices. Specifically, enforcement must focus on originators and brokers.
But you could look far and wide to find regulators actually cracking down on abusive lenders, he writes.
The government does not need additional regulations — they just need to enforce the existing regulations.
Well, yes. That all sounds fine. And Barney Frank wants to lift the loan limits on Fannie Mae and Freddie Mac.
But let’s step back a bit.
The reason that abusive lenders (and listening to their voices on the mortgage radio ads, you knew you’d heard that guy before—maybe on a used car lot?) were flourishing was that money was sloshing around, and anyone with a pulse could set up a mortgage company and sell mortgages. That’s where the problem started. Tons of money sloshing around looking for a borrower. And of course, when we are talking about money sloshing around we are usually talking about the government.
For instance, there are the government’s mortgage giants, Fannie Mae, Freddie Mac, and Ginny Mae, all in the business of throwing money at housing. When you subsidize things like that you are going to get distortions in the market.
It’s not too surprising that the downmarket end of the business was up to some nasty shenanigans. It usually is. In the downmarket mortgage business the government has been pressuring lenders to lower standards for years.
But why should the politicians complain. When things go wrong it creates splendid opportunities for politicians to posture and to blame other people for things that they initially set in motion.
So the best we can hope for is to get out of the mortgage mess without the politicians really screwing things up.
Give them a chance and they will create a royal mess. Remember the Great Depression?
Sphere: Related Content |Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.
What Liberals Think About Conservatives
[W]hen I asked a liberal longtime editor I know with a mainstream [publishing] house for a candid, shorthand version of the assumptions she and her colleagues make about conservatives, she didn't hesitate. “Racist, sexist, homophobic, anti-choice fascists,” she offered, smiling but meaning it.
Harry Stein, I Can't Believe I'm Sitting Next to a Republican
Racial Discrimination
[T]he way “to achieve a system of determining admission to the public schools on a nonracial basis,”
Brown II, 349 U. S., at 300–301, is to stop assigning students on a racial basis. The way to stop
discrimination on the basis of race is to stop discriminating on the basis of race.
Roberts, C.J., Parents Involved in Community Schools vs. Seattle School District
Liberal Coercion
[T]he Liberal, and still more the subspecies Radical... more than any other in these latter days seems under the impression that so long as he has a good end in view he is warranted in exercising over men all the coercion he is able[.]
Herbert Spencer, The Man Versus the State
Churches
[In the] higher Christian churches… they saunter through the liturgy like Mohawks along a string of scaffolding who have long since forgotten their danger. If God were to blast such a service to bits, the congregation would be, I believe, genuinely shocked. But in the low churches you expect it every minute.
Annie Dillard, Holy the Firm
Sacrifice
[Every] sacrifice is an act of impurity that pays for a prior act of greater impurity... without its participants having to suffer the full consequences incurred by its predecessor. The punishment is commuted in a process that strangely combines and finesses the deep contradiction between justice and mercy.
Frederick Turner, Beauty: The Value of Values
Pentecostalism
Within Pentecostalism the injurious hierarchies of the wider world are abrogated and replaced by a single hierarchy of faith, grace, and the empowerments of the spirit... where groups gather on rafts to take them through the turbulence of the great journey from extensive rural networks to the mega-city and the nuclear family...
David Martin, On Secularization
Conservatism's Holy Grail
What distinguishes true Conservatism from the rest, and from the Blair project, is the belief in more personal freedom and more market freedom, along with less state intervention... The true Third Way is the Holy Grail of Tory politics today - compassion and community without compulsion.
Minette Marrin, The Daily Telegraph
Moral Imperatives of Modern Culture
These emerge out of long-standing moral notions of freedom, benevolence, and the affirmation of ordinary life... I have been sketching a schematic map... [of] the moral sources [of these notions]... the original theistic grounding for these standards... a naturalism of disengaged reason, which in our day takes scientistic forms, and a third family of views which finds its sources in Romantic expressivism, or in one of the modernist successor visions.
Charles Taylor, Sources of the Self
Drang nach Osten
There was nothing new about the Frankish drive to the east... [let] us recall that the continuance of their rule depended upon regular, successful, predatory warfare.
Richard Fletcher, The Barbarian Conversion
Government Expenditure
The Union publishes an exact return of the amount of its taxes; I can get copies of the budgets of the four and twenty component states; but who can tell me what the citizens spend in the administration of county and township?
Alexis de Tocqueville, Democracy in America
Living Law
The recognition and integration of extralegal property rights [in the Homestead Act] was a key element in the United States becoming the most important market economy and producer of capital in the world.
Hernando de Soto, The Mystery of Capital
German Philosophy
The primary thing to keep in mind about German and Russian thought since
1800 is that it takes for granted that the Cartesian, Lockean or Humean scientific and
philosophical conception of man and nature... has been shown by indisputable evidence to be
inadequate.
F.S.C. Northrop, The Meeting of East and West
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