[lbo-talk] CommonDreams 8/20/07: "Save subprime borrowers, not bloated bankers" by Dean Baker

Miles Jackson cqmv at pdx.edu
Tue Aug 21 08:19:25 PDT 2007


joanna wrote:
> Rick Kisséll wrote:
>
>
>> Published on Monday, August 20, 2007 by /CommonDreams.org/
>>
>>
>> Save Subprime Borrowers, Not Bloated Bankers
>>
>> by Dean Baker
>>
>> There is a simple and direct way in which the federal government can
>> help out millions of moderate income families struggling to keep their
>> homes. They can simply change the rules on foreclosure to allow moderate
>> income homeowners the option to remain in their homes indefinitely as
>> renters, paying the fair market rent.
>>
>>
>>
> The only problem is that rents, at least in the Bay area, are 1/3 to 1/4
> the price of a comparable house. So the lien-holder would lose plenty.
> Also, the lienholder would become responsible for the property tax, thus
> further lowering his income.
>
> Joanna
>
> _
You mean that a house with a mortgage payment of $6000/month would only rent for $1500/month? If so, why on earth do people buy houses in SF? You can live in a much nicer place for much less money if you rent. Does the mantra of "home ownership" drown out all rational analysis?

Miles



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