There are no good solutions to the Real Estate Crisis

Many of the solutions being offered by Washington and the financial media will do little to solve the real estate bust. Let's look at the root of the problem. The source of the problem is that consumers can no longer afford to make their payment. The low payment that they enjoyed for a period of time has changed to a much higher payment. As a result, many homeowners risk foreclosure because they are falling behind.

Most of these solutions involve helping homeowners stay in their homes by allowing them to qualify for a new fixed rate loan. Unfortunately, it doesn't solve the problem. If the homeowner couldn't make the higher payment on the adjustable rate mortgage, they will not be able to make the payment on the fixed loan. It is the payment that is the problem.

The mortgage industry wrote irresponsible loans to consumers who bought a house based on getting the lowest payment possible. As a result, we are all going to pay for this irresponsibility. This is not a problem that just goes away. This is debt plain and simple. Someone has to pay for it.

I have an idea. Why don't we use some of Greenspan's money that he is receiving for his books that he is writing and his enormous speaking fees he receives? After-all, he was the person on watch when this happened. He was also the one who encouraged people to take out adjustable rate mortgages.