Monday, October 13, 2008

How about a 90 Day Moratorium on Pandering and Bad Policies?

It seems that the two presidential candidates are determined not to be outdone in appealing to the small percentage of homeowners who took out mortgages that they eventually could not pay. At the debate in Nashville last week, John McCain promised to spend hundreds of billions of dollars to help delinquent borrowers negotiate different terms to their mortgages.

This week, Barack Obama raises the stakes: he wants to call for a 90 day moratorium on foreclosures.

Meanwhile, the millions of homeowners who saved their down payments and made sure that they locked in mortgages at a rate and a price that they could afford are left with the task of paying taxes to foot the bill for those who did not.

As to the presidential contest, I guess we are left to choose between the lesser of two moral hazards.

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