THE FREE MARKET LOOKS GOOD ON YOU, THOUGH

3/7/08

On the editorial page of today’s Wall Street Journal, Martin Feldstein, Harvard professor, noted Republican economist, and chief proponent of the “Economy as a Machine that Can be Perfectly Calibrated” school of economics, outlined his “solution” for the “mortgage crisis.” Dr. Feldstein proposed that the federal government (i.e., the taxpayers) lend homeowners who are having a hard time meeting their obligations an amount of money equaling 20% of their outstanding mortgage on an unsecured but senior basis. The proceeds from this “loan” would then be paid to the mortgage lender (if such a lender can be located) in order to reduce the principal of the troublesome mortgage. This latest helping of the codswallop emanating from the “free market” Republican Party would put responsible taxpayers on the hook for irresponsible “homeowners” in an effort to bail out reckless, tough guy “investors” who bet it all on Red 7 and now want to have Mommy make all the bad stuff go away. At least the misguided, flim-flam “plans” to “solve” the “mortgage crisis” proposed by the Democrats involve putting the taxpayers in a secured position.

Remember, Dr. Feldstein’s idea comes from a Republican, a former Chairman of the Council of Economic Advisors under Ronald Reagan, no less.

I give up.