“The average mortgage, already inflated by big rises in property prices, became 250 basis points more expensive – an increase of more than 20 percent – in the space of five months. “I pretty much got hit with a double whammy. I paid 50 percent more than an apartment would have cost previously and I [...]
We are used to politicians doing less than smart things. We kind of expect that from them. The moment they get elected, they start thinking about reelection. In their decisions they try to appeal to the lowest common denominator and our raw emotions. But Barney Frank’s plan to shift legal liability to the investors who buy mortgage-backed securities is one of the stupidest decisions that came out of Capitol Hill since… well, ever. I rarely use the word “stupid” in my writing, but the alternatives that come to my mind are not publishable. We feel bad for people who lose their houses, it is an American dream after all – own a house with the white picket fence, have 2.7 kids and 1.2 dogs.