Not the Loan Ranger
As i was reading my WSJ yesterday, i was happy to see that the Journal’s economics editor, David Wessel, talked about pushing for a mass government-sponsored refinancing effort, encompassing even those with houses less than their current mortgages. Of course, he had to quote a couple of Economists (Mark Zandi from Moody’s) and (Christopher Mayer from Columbia) to back him up.
Anyway, i wanted you to know that i no longer feel like the “loan ranger” anymore.
And now if you are interested, what follows now is a copy of the email i just sent to Wessel regarding his article.
Mr. Wessel–I read with great interest your article about the economy yesterday. I especially found your comments from Zandi and Meyer about pushing for a massive government-sponsored refinancing effort particularly enlightening…considering the fact that is something i have been pushing myself for nearly “two years” now. It’s always been the best way to renew consumer spending without Government spending and reducing taxes and it is justifiable from a long term inflationary (globalization) perspective, and it is consistent with financial theory (Fama).
One of the problems that we have been having in the United States, however, is that the only people that are getting heard are the Economists. Having an M.B.A. from The Wharton School and more than twenty years of unique experience monitoring the risk of housing and mortgage-backed securities just does not mean anything compared to the unproven economic academics.
Along those lines, you may be interested in my recent Business Insider article that offers ten solutions for the Economy (including the 4.0% refinancing solution). I believe it is line with your thinking, which i believe recommended more action and fewer dogfights. The link to that article follows: