The ever-irascible WC Varones has serious issues with the appointment by the US Government of a Mortgage Czar.
SO we name all of our important enforcer positions czar. Does that seem a little strange? Why not kaiser, or how about fuhrer or maybe kahn. Why can’t we have a Drug Kahn and Mortgage Kaiser?
Don't forget that Tsar Nicky was a haemopheliac who was in constant danger of bleeding out.
As a financial metaphor I find it apt.
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3 comments:
Bloggotage worked. Varones contributor here; just checked out your blog for the first time. I'll be back!
Like many, I've been following the whole government’s involvement in the mortgage\sub-prime problem, with more than just a passing interest.
It appears once you get down to what they're saying the primary thing they're behind is providing money to non-profit organizations that help people in distress\foreclosure. A look at those organizations reveals that the core help they provide is personal finance education. In other words, "budgeting". Which we know is like trying to fix the obesity problem by teaching people how to eat right and\or diet. In both cases, the problem isn't a lack of knowledge, rather it's a lack of desire. So the solutions are ineffective.
The other area the government is focusing, is raising the limit that the FHA can loan. First off, from what I've seen, most of the people that have sub-prime problems, don't have homes over the FHA limit. Secondly, the FHA feeds Freddie Mac and Fannie Mae, which means they have set qualifications, which most people with sub-primes won't meet. Lowering the qualifications isn't an option, because of the repercussions it would have on securitizing the mortgages. Lastly, the FHA doesn't offer Interest Only loans. So anyone that can't afford their sub-prime loan is likely to find that even with a lower interest rate, switching to an amortizing loan (where both interest and principal must be paid) will result in a higher monthly payment. Thus they still won't be able to "afford" it.
But damnnit, the government sure "sounds" like they're trying to fix the problem.
But rather than complaining, criticizing and\or point fingers, I think I'll run for Mortgage Czar.
Will Mark Knopfler still be the Sultan of Swing?
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