Hillary Clinton appeared on Bloomberg to discuss ways in which the government could get involved to stop the spread of foreclosures and the meltdown in the subprime market. Among her ideas:
- Allow FHA to offer subprime borrowers credit at reduced rates to alleviate foreclosure due to high interest rates and mortgage rate adjustments
- Offer lender-incentives to extend foreclosure time periods or offer borrower-friendly forebearance periods
- Do not use tax dollars to offset some of the cost "at this time"
My business partner has been saying for the better part of two weeks that "the government won’t let 40% of homeowners fall off the map" – it seems he might be on to something. I however think that presidential candidates talking about the latest crisis is nothing more than currying favor for prospective voters.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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