Summary
The Obama administration is threatening "regulatory arm twisting" to lower interest rates. That is not the way to encourage more loans. Sure, the government can help those who currently need help by getting someone else to pay for it, but what about the future? What about the higher interest rates that new borrowers will face because lenders realize that they face greater risks in making loans?
President Obama needs to understand that he played a role in exacerbating the current real estate mess. During the campaign he advocated that the government step in and rewrite home mortgage contracts - unilaterally reducing the amount that homeowners owe and reducing their interest rates.See the full content of this document
Extract
Obama's 'Fixes' Worsen Problems
How did Mr. Obama's campaign talk affect banks' willingness to write new mortgages? ...
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