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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (361236)	12/3/2007 4:23:56 PM
From: Road Walker	Read Replies (1) \| Respond to of 1574494

Giving mortgages to people who can't pay them back, means you take a loss on a mortgage. Do that too often and your business will shrink or even disappear. There is a built in correction mechanism. But in the meantime a lot of wealth gets destroyed. With government the build in operation works the other way. Government programs tend to grow whether or not there is extra demand for their services. The interest of the politician is to weld more power, both for its own sake, and perhaps to a greater degree to the extent it can get special interests to support him. If a government program has negative results, that often becomes justification to spend even more money, "look at all these problems, we need to spend money to clear them up". The government sometimes screws up it's spending decisions, no doubt. Iraq is a PRIME example. So does private industry. There isn't a significant difference. And there isn't much difference at all on the back end effect to the economy.

To: TimF who wrote (361236)	12/4/2007 12:54:57 AM
From: tejek	Read Replies (1) \| Respond to of 1574494

Giving mortgages to people who can't pay them back, means you take a loss on a mortgage. Do that too often and your business will shrink or even disappear. There is a built in correction mechanism. They aren't giving the mortgages to the people effected; they simply maintaining the current interest rate on the loans for an extended period. The banks will still make a profit; just not as big. I know that's anti capitalist notion but open up your heart......you don't want these people homeless right before XMAS. And if that doesn't work.....think how much the banks will save not having to foreclose and then spruce them up for resale.