They have been playing this Hillary clip over and over on the radio this morning and it is driving me crazy. She says: Does she have any clue about how this would devastate the US economy? If you stop foreclosures you also stop new loans. Financial institutions do not foreclose on people at random, these are delinquent mortgages, usually way delinquent. Lending agencies don't want to foreclose, it is the last resort to recoup some of their money. Very seldom is the reposessed property going to pay off the loan. So if they can't get their mony back when the loan goes bad they are going to stop lending it out. If you freeze interest rates you also stop new loans, at least for a portion of the people wanting them. Those with great credit can still get loans, but those risky loans, the ones lending institutions know will include a certain percentage of bad loans. They will no longer be profitable and so they will no longer be made. And you know who will have the hardest time getting loans don't you, people with damaged or poor credit. I don't want to be racist or classist, but lower income and minority groups make up this population. So what happens to our economy when we stop lending people money? Well people stop buying stuff, especially big stuff like houses and cars. Then the people who build houses and cars have no customers. Then we see unemployment soar and guess what? we have more foreclosures and reposessions. And you know AHHHHHHH! This kind of thinking drives me nuts. The only solution for the current mortgage crisis is for the government to stay out of it. Institutions that made bad loans will recoup some of their losses but will learn from their mistake and be more careful on future loans. People who took out bad loans will loose the stuff they bought with other people's money and will hopefully learn not to take out loans they can't pay. If the government bails them out then lenders and borrowers will make more bad loans, why not old Uncle Sam, or Aunt Hillary will pay the bill. If the government stiffs the lenders then they are going to be much more conservative in their loan policies. Less government = more freedom, more money, and more happiness for everyone. OK, thanks for letting me rant.