How About We Stop Loaning And Borrowing Our Money At Interest?

I will be happy to refi my current mortage with the first loan agency (be it bank, credit union,or local pawnshop) that will give me a FEE BASED loan as you describe. I do not see why we have to have the government order such a thing--simply let some lender begin offering it and people like myself will beat a path to their door.

At least I thought that was the way the free-market is supposed to work. Where am I wrong here?

(By The Way, Ray--you got any money you'd like to loan me on those terms? I think we could do some business if you do.)

I think the govenment IS involved in what banks acan and cannot do for loans. The loan 'industry' is yet another example of a profession that lobbies our politicians. I would like to hear from someone who'd look into this to see if banks CAN'T loan this way. It may be similar to the legal profession. It sets a minimum fee that a lawyer can charge - say $200 per hour. Any lawyer that tries to charge LESS is sanctioned and may lose his license! I have heard, though, that some banks in Detroit are lending by FEE because they are islamic owned and apparently our government leaders are too chicken to stop them from running their neigborhoods by sharia law! --RPC