Paulson wants new laws to halt abusive loan practices.Should cons just let the markert fix it?

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And just wait for the economy to collapse?

Or should they have done something 4 years ago when this problem started?

WASHINGTON (AP) — Treasury Secretary Henry Paulson called Tuesday for an aggressive response to deal with an unfolding housing crisis that he said presents a significant risk to the economy.

In the administration’s most detailed reaction to the steepest housing slump in 16 years, Paulson said that government and the financial industry should provide immediate help for homeowners trying to refinance current mortgages before they reset at much higher rates.

He also called for an overhaul of laws and regulations governing mortgage lending to halt abusive practices that contributed to the current crisis.

http://biz.yahoo.com/ap/071016/paulson_housing.html

8 Comments
  1. Reply
    Lavrenti Beria
    May 14, 2011 at 11:30 pm

    Laws like preventing stupid or greedy people from getting ARM’s?

  2. Reply
    spleenwater
    May 15, 2011 at 12:30 am

    “let the market work itself out” is a euphemism for “i don’t care” and “let the poor lose their homes”.

  3. Reply
    ST
    May 15, 2011 at 12:56 am

    Problem is the government dousnt let the market function independently, it constantly regulates everything which leads to abusive loan practices. Republicans and Democrats have done nothing but make things worse

  4. Reply
    Goldenrae9
    May 15, 2011 at 1:44 am

    This is a great example of why the gov’t does need to intervene in order to protect the interests of the American public.

  5. Reply
    Major Deek
    May 15, 2011 at 2:22 am

    Another leftist fantasy “abusive loan practices.”

    So how can someone lending you money be ABUSIVE? LOL.

    It is GOVERNMENT mandates upon the lenders that cause this problem, if the industry weren’t told that they HAVE TO lend to people who are clearly credit risks we wouldn’t have this mess.

  6. Reply
    ZardoZ
    May 15, 2011 at 3:11 am

    It’s kind of like that expression from another compassionate conservative “Let them eat cake”. It’s the first thing this administration has done that makes any sense, and they waited too long to do it.

    Of course we could wait for the market to sort it out, like Hoover did in 1929.

  7. Reply
    bromide_staining
    May 15, 2011 at 3:25 am

    That’s the latest NeoCon chant.

    “Let the market take care of it”. Well the market has failed :

    The healthcare industry (increasingly out of reach, and growing)
    The housing industry (prices dropping, homes on market skyrocketing, new home construction plummeting)

    The loan market : Countless jobs being lost, irresponsible lending practices encouraged by BushCo legislation, interest rates going up, economy as a whole going down.

    Cons are slowly eroding and destroying this country.

    Rainbows and Puppies : You are a perfect example of the stupidity and ignorance of Conservative America. There’s ALOT wrong when some “boob” signs a mortgage contract that he can’t afford. When you multiply that by a few million people across teh country it creates very large, very tangible economic problems…

  8. Reply
    Amos S
    May 15, 2011 at 3:58 am

    All the laws in the world won’t make an idiot more intelligent.This ain’t rocket science,if you can’t afford the payment with your current level of earnings(with a substantial amount set aside for unforeseen emergencies) don’t sign on the dotted line and take out the loan.

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