Site for Free Markets and Free People

Tuesday, March 03, 2009

Mortgage Contracts Soon to be Null and Void

Say goodbye to mortgage contracts. The Democrats have apparently agreed to a plan that allows judges to tear up the contracts and force lenders to accept cramdowns.

Just to recap: the government is pressuring banks to lend. Now the government says that bank loans are useless when they do lend. And if banks don't go along, there will be repercussions. Hmmm...I don't think this is going to get credit flowing anytime soon.