Let's be real here: There was never a real threat of government hearings. It was just a pro forma mention, Kerry putting on a little display. And all of the parties involved (even us) knew that, or should have.
Kerry just expressed what many people were feeling, and since he's a Senator, he has a louder megaphone. That's the beginning and end of it.
By the way, Sliego...at the risk of being political...there is no housing bailout, in the sense you mean. The government isn't giving money to anyone. The banks have just agreed to delay the interest adjustment for awhile, on a case by case basis. No one--repeat, no one--is paying a dime more in taxes for this.
Why are the banks doing this? Because they'd rather have something than nothing. No bank wants to foreclose on houses in a falling real estate market. They're in the money business, not the house business. If delaying the interest hike can do that, everyone benefits.
By everyone, I don't just mean the banks and the home owners who took on those adjustable rate mortgages. I mean ALL of us, including you, Sieglo. A couple of million homes in foreclosure will sending the housing market tumbling even further--and the value of all houses will go down.
For the last few years, a large number of us have been refinancing our homes and taking out equity and spending in cars, TVs, and everything else. Our purchases have supported the economy. But when house values drop, equity vanishes. So does purchasing power. Even yours, Sieglo.
And what happens then? The economy tanks. It's probably going to tank anyway, but anything that can slow the drop in real estate value will help by lightening the blow.
There are millions of people who are still at risk. There may not be any justice in helping them, after they volunteered for the ARM mortgages, even if they didn't understand (which, of course, is what the banks intended). But for the sake of the national economy, let's hope the banks give them a little slack. It will help us all.
