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Monday, October 13, 2008
Paul Greenberg :: Townhall.com Columnist
Q and A - How Would You Answer?
by Paul Greenberg
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


But, hey, this is politics - not economics or equity - and specifically the politics of envy, which flourishes in inverse proportion to prosperity. Look for more of the same as times get meaner. Bad times are the health of bad ideas. And false choices.

Which candidate will settle for nothing less than victory on what he considers the central front in the war against terror, whether Iraq or Afghanistan? Which foresaw and fought for the adoption of a new and successful strategy in Iraq, and does that matter if it's Afghanistan that's the real central front? And how realistic is it to reduce American strategy to a choice between abandoning one or the other?

Which candidate has a strategy for the future, and which is more interested in finding scapegoats? Speaking of which, has George W. Bush - come to think, he's still president of the United States - ever done a single thing right in his life? Like preventing another major terrorist attack on these shores for the past seven years, or seeing the war in Iraq through to the cusp of victory despite many a terrible blunder, or ending Saddam Hussein's genocidal reign there, or giving his secretary of the Treasury and chairman of the Federal Reserve a green light to do whatever's necessary to stop the current economic slide - or are both presidential candidates so intent on separating themselves from an unpopular president that they dare not acknowledge all that?

Which candidate would risk saying a single unpopular thing in this campaign for no better reason than he believes it?

As this election grinds on, voters will have their own questions to pose. And they'll doubtless be as rhetorical as mine.

Rhetoric is one thing, reason another. There are times when John McCain seems to be running against an unpopular Democratic leadership in Congress, with its earmarks and toxic twins (Fannie Mae and Freddie Mac). There are other times when Barack Obama doesn't seem to be running against his opponent but against George W. Bush, who isn't on the ballot this year.

Logic has little to do with politics, especially in an election year, when winning tends to become the only goal. In the mounting urgency of a campaign, who's got time or energy to waste making sense?

Another presidential debate is over. Another awaits. So does History.

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Plan to Repair Housing ...19
Q19. Do you have any final comments?

I have contended now, for well over a year, that we need to address the housing and mortgage issue with a simplified, one-size-fits-all, solution. There is too much confusion, congestion and inconsistency in the current loss mitigation process and it is leading us nowhere.

I have also contended that the problem is monthly payments…and that we need to create a discounted payment program to deal with the current crisis. We do not need to discount the interest rate…that’s the function of the market place, nor do we need to discount mortgage balances at this time, given the non-market driven, depressed nature of housing values, influenced by non-market forces.

My Plan to Repair Housing in America was constructed to address the key issues: getting payments down to a manageable level for those households in trouble or worried, thereby affording homeowners some much needed room in their current household income; controlling interest rates and removing the “ARM reset” headlines from the media; removing excess housing from the real estate market; and calming the economy.

The loan program I am advocating is the ONLY one which can accomplish the task at hand, for the good of America.


Plan to Repair Housing ...18
Q18. You said that this boom-bust process happened before in housing, why won’t it happen again? I believe that the American public wants reassurances for their $700 billion dollars and related sacrifices.

In the beginning of the interview, I made the case that this is really the second time in my 30 year career that this credit binge-purge process has occurred, and this has to be the last. The credit process cannot be allowed to be treated in an accordion-like manner…expanding for fun and profit, and contracting in panic and profit.

I contend that the binge-purge is not a market function, but a function of greed and ignorance. Income, credit rating and interest rates are the key variables in underwriting.

In part 2 of my plan, I address the future of mortgage credit and underwriting. I believe that credit underwriting guidelines need be so structured as to have minimum levels required of all lenders, which would satisfy those who wish to see housing opportunity expanded. Then maximum tolerances would be defined. What you would have is a well articulated lending landscape, in which the market participants would define themselves. Lending needs to have a clearly defined playing field, and there is simply no abuse or alteration to be allowed. It would be fair, clear, inflexible and ruthlessly enforceable.

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