Nutcase Confirmed

From time to time I read columns of nutcases all around. This lends itself to keeping one balanced and away from the extremes. Perhaps that is why I can take issue with both major political parties in a number of areas, but that is another post. This one confirmed one particular nut.

"I don't believe in a government that protects us from ourselves," Ronald Reagan
said.
I do.

That was the opening line of the column. It clearly confirms Froma Harrop is a nut. She goes on to say

Blame this in part on the cult of homeownership, which the lending industry
relentlessly flogs. There's no disgrace in renting, and home ownership is
generally not the road to riches that real-estate interests make it to be.

"The cult of home ownership?" Could this be the "cult" that enticed immigrants from around the globe for generations? Could this be "the cult of home ownership" that has provided a safety net for families for generations in this country? Could this be the "cult of home ownership" that is the foundation of the American Dream and a better life that millions of immigrants chased for thousands of miles to come to this country? Maybe Froma baby should get "communist" tatooed on her forehead. Before communism failed miserably around the world, only the elite in those countries could own a home.

In case you haven't figured out where she is going, it's all about subprime mortgages which have been getting a ton of attention lately. You see, there are a whole lot of folks out there who can't borrow lunch money from conventional sources either because of unfortunate circumstances or because of poor individual choices. Maybe Froma baby doesn't know that most "prime" banks and mortgage companies are audited regularly by various levels of government to insure that our individual deposits (checking and savings) and investments are being handled in a responsible manner. They frown on underperforming loans, i.e. those that have an abnormal level of delinquency and losses, as well as those whose credit history and loan structure indicate that they will probably fall in to that category. Consequently, a new "subprime" industry developed so the increasing number of credit challenged folks could reestablish themselves in the credit world. She goes on to say,

Those who cannot afford a traditional mortgage probably shouldn't be borrowing
the money.

Maybe she should talk for a while to the guy who got his car and house repossessed because he got sick or his plant closed. Maybe he would like a chance to get back on his feet. How about the guy who made bad credit card choices as a college student, but now has figured it out? He'd like a chance to get a car to go to his first job so he can clean up his credit mess. Yeah, there are some that are never going to pay anyone and they run the cost up for the rest. BUT, there are tons of good people who just can't qualify for a conventional loan...YET.

Just an observation.