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Fed chief's advice is infuriating

May 11, 2008

Ben S. Bernanke's comments in the May 6 story, "Fed chief urges action on foreclosure crisis," are absurd and should infuriate anyone who repays their debts as promised.

I find it incomprehensible that the chairman of our Federal Reserve system is recommending that taxpayers pitch in to help reduce the mortgage balance of their neighbors -- just so they have an "incentive" to repay their loans. I am no economist, but Mr. Bernanke's rationale seems terribly flawed.

Will future home buyers expect similar assurances that they will never lose money if they buy a home? Are financial contracts worth the paper they are printed on? Will lenders leave the market in droves? Will that result in mortgages being even more difficult and costly to get? And will that lead to fewer buyers and even lower property values?

Dan Weiss,

Residential Mortgage Broker

Toluca Lake

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