Sunday, December 09, 2007

Mark Steyn on National Review Online

Mark Steyn on National Review Online


The government has, in effect, nullified the terms of legal contracts mutually agreed by both parties — borrower and lender, Mr. and Mrs. Joe Schmoe and the First National Bank of Pleasantville. This is a pretty remarkable act by a “conservative” administration. The government’s general absolution for imprudence by both borrower and lender doesn’t seem a smart move — for the U.S. credit markets, for real estate, for responsible borrowers for future homeowners, or for state and municipal taxpayers whose governments are being encouraged by Washington to bail out home “owners” by issuing tax-free debt. Democrats bemoan the lack of “affordable housing” while simultaneously demanding government rescue home “owners” with unsustainable mortgages. But saving the latter obstructs the former: the principal benefit of a property-bubble correction is, after all, much more “affordable housing.”

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