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To: koan who wrote (68430)	9/3/2007 12:57:08 PM
From: Dan3	Read Replies (1) \| Respond to of 116555

Re: People do not make enough money fro these high prices. The ONLY thing that could help would be refinancing at lower interest rates and that is not going to happen. It's not the only thing. We could reverse the regressive public policies put in place during the past decade. Those policies have led to a "company store" economy in which many workers are encouraged to borrow to pay for food and shelter. It's not very smart of them to have done so, but if they were UChicago Economics grads they wouldn't hold those jobs in the first place. Add a deductible for social security and medicare/medicade taxes and remove the cap to make up for it (and keep total revenue for those programs constant). Let workers up to the level of low to mid middle class take home more of their wages (so they can pay off their homes and debt). Cap interest rates at a few percent over the corresponding federal bond rate. If it doesn't make economic sense to loan to people at those rates, then don't loan to them. The present 30% - that's 30%! - default rates on virtually all consumer credit are destroying our economy. It leads to terrible decisions on the part of both lenders and borrowers. Stop making loans to people who will never be able to pay back those loans.