Summary
AS homeowners by the millions fall behind on their subprime mortgages, cries for a government bailout are starting to echo through Washington. That would be a very bad idea. It would reward irresponsible lenders and leave the taxpayers holding the bag. Rescuing the irresponsible only leads to more reckless lending.
But there are things that the government should do to ease the crisis and prevent a repeat of the current mess. For starters, Congress and the White House could light a fire under the moribund Federal Housing Administration.See the full content of this document
Extract
Subprime Lending: Reform, Not Rescue
Subprime loans are made to people who can't qualify for prime- rate mortgages. Generally these are...
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