They are talking about getting rid of Dodd-Frank legislation to get the economy moving.
Uh, that didn’t end well 2002-2007, did it?
Meanwhile, families here in Orange County, CA still have not recovered from 2003-2007 excesses.
We really need regulation to save people and institutions from harming themselves. Ultimately the sensible majority pay for the financial implosions.
Why should my neighbor take out $200,000; spend it extravagantly then default? I have to bail out the bank and never got to enjoy the $200,000 party.
I couldn’t agree more.
But it seems like more bailouts on the way.
Taking excessive cash out is obviously a risk, as proven when the last bubble burst, and those who cashed out walked away with that cash (and the cars/boats/RV's they bought with it). In a bubble, a refi of 95% value is far more risk than 50%. Why not just raise the interest rate on extra cash to match the risk? An extra 2% or 3% would discourage "cashing out".