> In article news.individual.net>,
> krw att.bizzzzzzzzzz> wrote:
>

>> Today Bernake announced that mortgage holders should lower mortgages
>> (yes folks, he meant the principle) so the home-mortgage problems
>> disappear. I guess I should buy fast, so I can get some of that
>> free money

>
> Wouldn't lowering the interest accomplish the same objective, you run
> the rates down to 1%% and you'd be amazed at how many defaulters could
> make the payments. Plus, you can make the loan non assumable, thus not
> being able to charge a higher rate to new buyers or not have to carry
> the house if it is sold. It's still an undeserved gift, and there is a
> moral hazard in rewarding imprudent behavior, but it may be the best
> option.
>
> Homeowner over head, gets principal reduced in 5-10 years house (land
> actually has appreciated due to inflation) and sells at a profit.