How did they miss it?

The financial bailout bill took some of the attention off of the veep debates last week.  There’s one thing I want to point out that I haven’t seen a single article on.

Sen. Biden, in speaking about the financial crisis, said that bankruptcy court judges should have the ability to lower principle and interest on mortgages. 

Ding Ding Ding, doesn’t that set off alarm bells to you?  Apparently it did not to the press, or the Republicans, or the Fed Chairman, or Fannie and Freddie chairpeople.

A mortgage is a private contract.  It lays out the details whereby you receive money in a lump sum in exchange for a promise to pay it back with interest.  If you weren’t going to be paying interest, do you think anyone would loan you money?

If courts had this power, then any mortgage could be written down without the input of creditors and we think the credit market is frozen now?  How could we expect anyone to make a mortgage loan with anything other than punitive interest considering how big the risk just became?

The only ones foolish enough to make loans under those circumstances would be the Federal Government under Democrat leadership. 

The bailout, statements about modifying (federalizing, really) private monetary contracts, mental health parity (read my previous entry) and the meetings over the weekend with Europe’s bankers all point to a push for an Obama regime to radically move America to the Socialist Left and globalization of the world’s central banks.

I’m scared.  And, Halloween is still 3 weeks away.

Boo!

This entry was posted on October 5, 2008 at 14:08 and is filed under Politics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.