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Showing posts from December 16, 2007

more economic stuff

Business Times - 15 Dec 2007

RELIEF PLANS
US sub-prime bailout creates a moral hazard

Proposed rate freeze may drag out recession, responsible mortgagees will have to compete for benefits and tax breaks

By LEON HADAR
WASHINGTON CORRESPONDENT

'HELP is on the way!' is the kind of slogan that should probably be embraced by every US politician ranging from the Republican White House to the Democratic-controlled Congress - all of whom seem to agree that the federal government needs to come with a 'relief plan' to help consumers and businesses devastated by the ups and downs of the economy.

Indeed, notwithstanding the ideological differences between the free marketers who supposedly dominate the Republican party and the more social-democratic-oriented Democrats, the fact is that both parties share the view that the government needs to 'do something' to deal with the current sub-prime crisis.

While Democratic lawmakers, presidential candidates and liberal pundits have c…