American Economics

Press reports indicate that the Obama administration is planning to use taxpayer funds to "buy down," that is reduce the principal owed, on delinquent mortgages, but this seems to me to be a much too complicated approach.

Why not be more direct? Let's raise the mortgages of those who are current on their payments and reduce those of those who are behind. It accomplishes the same thing while cutting out the middle man (aka: the U.S. Treasury).

Meanwhile, we are also being told that Congress is making plans to allow bankruptcy judges to alter mortgages. Undoubtedly, advocates of this measure will be shocked -- shocked!!! -- when the uncertainty that this creates will require higher interest rates on mortgages in the future.

Yes, I am bitter.