In the Middle Ages, they threw people who failed to repay their debts into debtors’ prisons. Today debtors are rewarded with all kinds of government perks. Look how far we’ve come!http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_baum&sid=auFHtpfT9hRI
Borrowers took out mortgages they couldn’t qualify for to buy homes they couldn’t afford. When the housing market collapsed, they were rewarded with government-subsidized mortgage modifications and, in some cases, partial forgiveness on their loan balances. And now, under Rogoff’s 6 percent solution, debtors would see more of their burden lifted.
And we, the savers, get screwed again.
Friday, May 22, 2009
America to use the "Zimbabwe Solution"
A great piece by Carolyn Baum on those who wish for the FED to use inflation (6% a year) to ease us out of the recession. They say we need to help those who are struggling with their decisions. This is nauseating.