A comment on laws concerning mortgages

I know it would make sense for me to be all over the grumblings about some kind of comprehensive mortgage reform, but there are several reasons for my relative silence. First and foremost, nothing has been clearly decided. Most of the motions up are so freaking muddy that there's no way they can be implemented. For example, let's say they were to try to buy up at-risk mortgages. What happens with home equity loans that are riding along? How exactly do you factor that in? Do you subordinate the subordinate new home mortgage loan to the formerly subordinate second loan? I'm not saying it's impossible, I'm just saying they haven't worked out the basics, so it's all just posturing, right now.

Second, I'm not entirely certain that it's possible to act in time, or if that's even desirable. There are so many, many wild cards.

I just think it's interesting that virtually every solution to the problems of the market boils down to some form of socialism. So, I, of course, would like to see a blatantly socialist response. But, I might just be pot-stirring, there.

I'm thinking, realistically, the best that the government can do for swift, effective action would be to let both sides fall. Take a step back. Let those over-inflated mortgages hang like albatrosses for a bit, so everybody can get a real good look at what happens when you truly believe that laissez faire line.

Won't happen, I know. They've already bailed out the biggest players, and it's just a question of how many folks are going to get bailed out. The problem is, though, that the vessel isn't sea worthy. Every "bail out" just drowns someone else. After all, the money has to come from somewhere....

I say we start with re-structuring how credit is given. I say we re-structure how capital is handled. But, hey, I might be just a tad too convinced....