Thursday, January 29, 2009

Principal reduction

Washington Post Article

5 reasons why principal reduction is terrible.

1. It encourages reckless debt behavior
2. Fosters fiscal irresponsibility
3. Banks won't lend if they think their loans might be reduced
4. I have to pay for it (my rate will be higher, or my taxes)
5. I acted responsibly, my principal is not being reduced

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