Here is a letter I sent to the editor of Smart Money Magazine regarding an article in the May 2008 issue.
Very rarely do I agree with anyone on the Fed's actions. However, Roger Lowenstein has it right in the May 2008 issue of Smart Money. When will people learn, lower interest rates do not solve the problems. This is in fact how we got into this mess: cheap, easy credit!
The best thing that can happen for the economy is if some people do indeed lose their homes and some mortgage lenders take a loss. Then maybe people with think about their financial habits a little bit more the next time those rates entice them into a purchase they cannot afford. And just maybe those mortgage lenders won’t be so willing to lend to those people that cannot afford the loan knowing the consequences.
Just my thoughts.