Re: Unaffordable Rates Of Interest
Re: Will Ordinary People Continue To Have To Pay Unaffordable Rates Of Interest After The Bailout?
By Lawrence Velvel
Dean, Massachusetts School of Law at Andover
I would like to ask a question about the bailout. The question comes out of ignorance, or perhaps because I've seen so little (or no) reference to it in the media. The questions is: under the bailout, what will happen to the mortgage rates paid by persons who have adjustable rate mortgages? These persons often were sucked into, and even criminally defrauded into, mortgages they would be unable to afford after the adjustable rates rose. Their inability to afford the higher rates was a major cause -- probably the cause -- of the current debacle. But, as near as I can tell from the media, they will still have to pay higher, probably unaffordable rates after the bailout -- that is, if they haven't already been foreclosed upon and lost their homes. If they still have to pay higher and unaffordable rates -- which I guess they will except in the unlikely event of a drop in rates that is both large and permanent -- they will continue to be drastically hurt even while Wall Street is bailed out, ultimately will likely lose their homes, and we would seem on these accounts to be headed for further disaster in the future.
Maybe what I've said above is all wrong. But if it's not wrong, and more particularly, if people with unaffordably high mortgage rates will continue to be liable to pay those rates, why is nobody discussing this, what permanent good will the bailout do, and, even if the bailout helps the heavily monied class (the residents of Richistan), isn't it doing nothing for the millions of less affluent who got sucked into unaffordable mortgages?
This posting represents the personal views of Lawrence R. Velvel. If you wish to comment on the post, on the general topic of the post, or on the comments of others, you can, if you wish, post your comment on my website, VelvelOnNationalAffairs.com. All comments, of course, represent the views of their writers, not the views of Lawrence R. Velvel or of the Massachusetts School of Law. If you wish your comment to remain private, you can email me at Velvel@VelvelOnNationalAffairs.com.
VelvelOnNationalAffairs is now available as a podcast. To subscribe please visit VelvelOnNationalAffairs.com, and click on the link on the top left corner of the page. The podcasts can also be found on iTunes or at www.lrvelvel.libsyn.com
In addition, one hour long television book shows, shown on Comcast, on which Dean Velvel, interviews an author, one hour long television panel shows, also shown on Comcast, on which other MSL personnel interview experts about important subjects, conferences on historical and other important subjects held at MSL, presentations by authors who discuss their books at MSL, a radio program (What The Media Won't Tell You) which is heard on the World Radio Network (which is on Sirrus and other outlets in the U.S.), and an MSL journal of important issues called The Long Term View, can all be accessed on the internet, including by video and audio. For TV shows go to: www.mslaw.edu/about_tv.htm; for book talks go to: www.notedauthors.com; for conferences go to: www.mslawevents.com; for The Long Term View go to: www.mslaw.edu/about_LTV.htm; and for the radio program go to: www.velvelonmedia.com.