The Economy ~ Mountain Mama

Thursday, December 04, 2008

The Economy

I know someone facing possible foreclosure. In fact, among the five of us that were offering moral support, we knew four families facing this problem.

One lady asked: Why can't the government just insist that the banks stop raising the ARM rates?

I usually ponder questions like this and try to see the other side and this time I can't.

Why do the banks have to raise interest rates on ARMS right now? Wouldn't it be better for them to still receive a smaller mortgage payment than a foreclosed home?

It wouldn't solve our economy, but it would help out thousands of families. That can't be bad.

Or am I ignorant of something?

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