Subprime Bailout

I struggled through a post that never made it to reality last week. I was trying to write about the Bush Adminstration's subpirme mortgage bail out. I studied lots, read lots of articles and was just having too much trouble writing about how the plan is too little too late. How it is not going to help consumers. Well here is an atricle in NY Times that does what I couldn't do.

Teaser Quote:

But won’t the borrowers gain, too? Not if the planners
can help it. Relief is restricted to borrowers whose mortgage debt is at least
97 percent of the house’s value — which means that in many, perhaps most, cases
those who get debt relief will be borrowers who owe more than their house is
worth. These people would be nearly as well off in financial terms if they
simply walked away.

There is the problem. The Bush Admin is puttinga band-aid on a gushing chest wound two hours after arriving at theaccident. Itis just too little too late and the plan gets in the way ofreal reform thatneeds to take place. My industry needs tough love rightnow. Not a quick fixthat promotes the status-quo.