[Freedom_Is_Not_Free]

I think the government is making a massive mistake if they are too aggressive trying to forgive mortgage debt by owners on the edge of foreclosure.

If they are too aggressive renegotiating loans for troubled home owners, more people who can afford their mortgages but are upside down on those loans will just stop paying, in hopes the government will come and lower their loan and interest rates.

Rather than reduce the losses by preventing foreclosure, this will increase the losses by reducing cash flow to the banks.

You get more of what you subsidize. If the banks subsidize bad behavior through mortgage defaults, they will get more of them.

[L,TOWM]

The contrarian investor in me thinks that if you are owning rental property or apartments on either coast, you are probably set for a while.

Of course their are a few investment vehicles out there that probably have a lot of this stuff undrlying their REIT or LP units, but I have not researched that deeply. A lot of this stuff is probably only eligible for 501(d) types, though. And I am not there yet...

[Terry Mross]

I can’t believe McCain is that stupid. Two neighbors bought the same size house for the same price with the same ARM. They both adjust. Neighbor “A” pays his higher payments. Neighbor “B” gets his principle and rate lowered. Does McCain think “A” would continue to pay?

[Swing_Thought]

Hey “Freedom”, would you add me to your ping list?

You can put me in JasonC’s place. ;-)

[roamer_1]

Herein lies wisdom:

"You get more of what you subsidize." -Freedom_Is_Not_Free