The Mudcat Café TM
Thread #118625   Message #2566085
Posted By: gnu
13-Feb-09 - 12:53 PM
Thread Name: BS: Reduce All Mortgages' Principal, TIME
Subject: RE: BS: Reduce All Mortgages' Principal, TIME
Did not read the article. Dunno if I agree with the idea, but... thought... should there be an accompanying cap placed on rates?

If the principals are cut, even though the mortgagors get their money, they are still going to have to generate income. I assume they may raise the rates to do so, no?