The Subprime Loan Freeze: Your Email Replies

I'm hearing from so many of you about the idea of freezing some subprime loan rates. Keep your emails coming in. Here's a sample of what I've gotten so far:

Paul M:
What's next? People who lose a certain amount of money in casino's get a tax credit for the losses? Risk and reward is what makes markets great, and people need to be held accountable for their actions.

Everyone wins if this decision is made from a business point of view for the country and not an emotional decision. The government would not be bailing anyone out. The loan industry must take some responsibility for their loans and not punish the people they approved for the loans.

With the high inflation that has been in the real estate market over the past 6 years isn't a bail-out just creating an artificial bottom for house prices, and thus encouraging people to go out and buy more overpriced homes because the prices will start moving up from a higher bottom.

Kevin F:
Yes, the government should step in and freeze rates. If we had a pure free market economy, I would disagree. But, we live with past manipulations and a strangling tax code. The result is that the market has become dependent on “drugs.” You can’t quit cold turkey but we can start to manage our way out of the problem over time. The economic implications of letting all foreclosures happen would be a shock too great and punish the innocents much more than the envy they may see at some getting a “great deal.”

Clay T:
How can the Federal government step in and alter contracts between private individuals and corporations? I can see how a bank that is holding a loan in it's portfolio could do it in concert with the borrower, but isn't it illegal for the government to unilaterally alter existing loan contract terms???

Questions? Comments?