[econjack]

Man...do I hate this solution. It's like the old Savings and Loan crisis of years ago. Back then, the S&L's were offering very high savings rates to depositors. Most were not federally insured. The reason the S&L's could offer such high rates was because they were making high-risk loans, much like we are seeing in the mortgage market now. When they went belly-up, in comes the federal gov't with a bailout.

Sorry, people, high returns are associated with high risk. You put your money in the high return because you were greedy and didn't want the lower (safer) return. You gambled...you lost. Not my problem, and sure as Hell don't use my tax dollars to reward those companies or investors who played that game.

To me, the same logic applies here. Those mortgage companies and their investors made their bed, now let them sleep in it, even if it is out on the sidewalk.

[DCPatriot]

Well, if it's my responsibility as a taxpayer to give a damn about rebuilding New Orleans..then the government can co-sign (guarantee) for the shmuck who sees his interest rate jump to an unaffordable one which will:

1) See him lose his house
2)See the lender incur costs foreclosing (It's expensive)
3) See the investor who funded the 2nd trusts..the 10%, 15% or 20% mortgages get out of the market.