Yes it will cause problems. Remember the banks had a low rate at first then made it’s profits when the rate went up. What Clinton will do is price fixing, which never works. Price fixing will limit the money supply to lower income people because the banks won’t offer low starter rates. Many people benefited from the low rates and are doing fine. People that should have never gotten the loan in the first place are in trouble. Look for more expensive rates and lower loan amounts under then Clinton plan.

Neither Hillarys nor Obamas plans will help the problem.

Obama keeps saying he want to bail them out so they can keep their home.

Most responsible people do not by a house they can not afford with a mortgage they didn’t read. Neither of these 2 Senators did anything in the Senate, except to condemn Bush because these people were taken “advantage” of by unscrupulous lenders. When I see one of the flyers or mailings, I know it is to good to be true. The interest rates went way down, yes conventional mortgages, refinancing was a great deal.
These people went for a mortgage that is good if you are going to pay down your mortgage before the ARM has expired. If you don’t, hte market goes down, your house is worth less, and impossible for you to refinance.
I saw a spot on the news about some foreclosures. One guy said I cant afford to pay my 3,500 dollar mortgage now. 3,500 dollar a month? And this is one we will have to bail out. NO WAY. That is stupidity.
Go after the lender, the real estate agent and the purchaser and leave me the heck alone.

Ah yes, get the government even more involved in “internal affairs”. C’mon, if you freeze the mortgage rates they will make up the difference in raising all of the other various intrest rates…not to mention her and her “Pelosi-ites” raising all the various taxes too.

Prime example:
Why do I as a long time holder of a credit card, with a perfect payment record, get charged a much higher interest rate than those who are offered lower rates to “switch over”? Because the bank still wants to make their money and will charge (screw over) their “regular” customers in order to cover the “losses” they will take on by enticing new clients.

she has called for moratorium on foreclosures as well. It seems that she’s putting everything in Al Gore’s ‘lockbox’ and try to pass it off as real viable solutions.

Yes it would help along with a freeze on oil, natural gas, and food.

Housing, food, and heat are essentials and should not be subject to market forces where people are hurt.

according to alan greenspan (The Age of Turbulance), interfering with market forces will be for naught; it produces ineffective results–like wage and price controls had little effect way back in the 70’s. Yes, it (a five year freeze) will cause more problems than it resolves and hillary claiming there is “no evidence” to that is speaking politicalese to get votes. In short, as greenspan says, government should not try to influence the market; it will correct itself.

A better plan would be for the lenders to simply convert these high interest loans to an affordable level. …forget about a freeze. That way lenders would still make a tidy profit and people wouldn’t lose their homes…win/win all around. The ‘bubble’ would deflate slowly and we’d all avoid bigger problems down the road. For sure many people will be living in a home that would be worth less than what they paid for it, but so what? You have to live someplace. People pay rent on places that they don’t own so what’s the problem living in a house that someday you may be able to at least cut even on? I don’t see that Clintons idea has a really downside, but in a way it will just put off the problem until later…we have enough of those kind of problems now. i think it’s better to take the hit all at one time and move on. Wadda’ ‘ya think?

If this is what I think it is, it is bullsh*t. The banks making these loans are in business to make money. They make money by having interest rates on loans. I have heard of people whining that they cannot make their payments and want the government to step in. Again, this is bullsh*t. If they could not have afforded the mortgage when they signed the papers, meaning read ALL the fine print, then oh well. You should not have bought the house.

Noah H. - Tidy little profit? People do not lose their homes? Read above. If people lose their homes it is their own fault. They should NOT have bought a house they COULD NOT afford.
The lenders are in the market to MAKE money. Are you going to go to that bakery and freeze the amount he can charge? Are you going to go to Starbucks and freeze the amount they can charge? Are you going to go to a car dealership and freeze the amount they can charge? No, because this is a capitilistic country, not a socialistic one.
I have a car. A nice luxury car, with all the accessories. Uh Oh. I cannot make the payments, Oh well, the government will freeze the interest so I can. Bullsh*t.
Americans need to wake the hell up. If you buy something in this capitalistic country, you are going to have to pay for it. If you can not afford it, then DO NOT BUY IT.

The current freeze has ripped off investors in bank stocks, to bail out morons who took out loans the couldn’t repay or didn’t understand. If these people are protected from the consequences their stupidity by Uncle Sucker, they’ll just do it again - the risky behavior of some people will be reinforced since they figure the government will bail them out.

Also, freezing mortgage rates will dry up money available for loans - why should anyone loan money for that when they can get a higher interest rate elsewhere? The drying up of supply is what happens when government artificially holds prices low - that’s eg what happens for cities that impose rent control.

The same think will happen if the democrats get the presidency and control health care prices - rationing will result.

Yes, it will. Hillary doesn’t think the rules apply to the Clintons. So why should it bother her to say that rules don’t apply to others as long as it means it wins her votes. Power at any price. Ugly.