A Modest Free Market Proposal

How can the free market fix the problem, it's simple really -- The property that the mortgages are connecting to, does not vanish. It's only the stupid way the Democrats forced banks and mortgage companies to levergae unqualified buyers into the housing market.

There must be something wrong with this crap-a-polosa, for so many Democrats to vote no. Do you think maybe the public isn’t behind another Democratic RTC S&L crash fiasco?

The Community Reinvestment Act of 1977 (CRA) and all it's later tentacles, rules and regulations, should be terminated immediately.

I have a suggestion, lets redo the IRS rules for rental investment back to the way they were before the Tax Reform Act (TRA) of 1986 and the subsequent S&L collapse, and watch those houses fly off the shelves. Remember, mortgages connect to real property — And the TRA reform was designed to take away the tax advantages of owning rental property. Isn’t it odd how the Democrats make these changes with no warning and wonder why things go south.

After Democrats got past this debacle, the Tax Reform Act (TRA) of 1986, they moved on to “poor people can own houses to”. Who needs to work and save for a down payment, have a good enough job to pay the mortgage, when uncle sam will do all that for you — Of course, there is a cost.

Like with all things liberal, there always is a cost.

Oh yeah, forgot to mention, after the 1986 bill when the S&Ls failures were getting bad, on October 19, 1987, the stock market fell by more than 22 percent. In 1989, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 set up the RTC.