Reactions to story from http://online.wsj.com

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  Mortgage Lessons From Down Under: US Politicians Were Wrong to Pimp The Homeownership Fraud

  http://mjperry.blogspot.com/2008/10/mortgage-lessons-from-do...
  57 days ago in CARPE DIEM · Authority: 368

  Lessons To Learn From Mortgage Lending in Australia: Maybe only a friendly foreigner could say this. But America needs to realize that not everyone can own a home. The American Dream of home ownership for all is a fraud. Politicians who pimped this dream created an unsustainable mortgage industry whose collapse is only surprising because it didn't happen earlier. America's mortgage industry will not recover, nor deserve to recover, unless it is prepared to challenge this politically unpalatable reality. Now, Australians -- and others -- place a high value on homeownership too. But they are aghast at the dumb things America has tolerated in pursuit of that goal. Even more dumbfounding is that nobody in Washington seems to be talking about fixing it. ~Editorial in today's WSJ by Australian journalist The editorial points out some significant differences between mortgage lending in the U.S. and Australia - the U.S. has nonrecourse, 30-year fixed rate mortgage loans, typically without prepayment penalties, and we also passed the CRA, and all of these uniquely American features of mortgage lending serve to "stack the cards against lenders and in favor of risky homeownership." And it's safe to say that all or most of these pro-borrower, anti-lender mortgage policies in the U.S. are government-mandated. In contrast, mortgage loans in Australia are recourse, so "When Australians borrow money to buy a house, they know that if they default and the mortgaged property doesn't cover the debt, they will be responsible for the shortfall. And the lender will chase them for it. It's a neat way of reminding Australians to borrow responsibly." Australian mortgages have either variable rates of interest, or fixed rates for periods of a maximum of five years, and they face a prepayment penalty when refinancing a mortgage to compensate the lender for the "lost interest the loan would have brought in had it been carried to term." Bottom Line: One part of fixing our credit crisis is to consider reversing the pro-borrower,
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  Should Everyone Own a Home?

  http://economix.blogs.nytimes.com/2008/10/06/not-everyone-sh...
  57 days ago in The Economy and the Economics of Everyday Life - Economix Blog - NYTimes.com · Authority: 193

  Should Everyone Own a Home? By Catherine Rampell No, says Janet Albrechsten, a columnist for The Australian, in an op-ed article today in The Wall Street Journal. Her conclusion: Now, Australians — and others — place a high value on homeownership too. But they are aghast at the dumb things America has tolerated in pursuit of that goal. Even more dumbfounding is that nobody in Washington seems to be talking about fixing it. I’m not sure Australians are alone in criticizing America’s low-barrier homeownership policies. I’ve actually heard a few Washington politicians use arguments similar to Ms. Albrechtsen’s in order to support plans for affordable rental housing — because, they say, some people just aren’t prepared to be homeowners.
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  Australian high horse?

  http://economics.com.au/?p=1808
  57 days ago in CoreEcon · Authority: 90

  In the Wall Street Journal, Australian journalist, Janet Albrechtsen gets on her high horse and tells the US how great Australia is on housing. Apparently, she claims that houses are not collateral in Australia and that if you take out a loan,
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  America needs to realize that not everyone can own a home

  http://rightrainbow.com/archives/2008/10/america_needs_t.htm...
  57 days ago in Right Side of the Rainbow · Authority: 31

  The laws of economics do not yield to our social policy preferences: The American Dream of home ownership for all is a fraud. Politicians who pimped this dream created an unsustainable mortgage industry whose collapse is only surprising because it didnt
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  Not Everyone Should Own a Home - WSJ.com

  http://jeffnolan.com/wp/2008/10/06/not-everyone-should-own-a...
  57 days ago in Venture Chronicles · Authority: 249

  Not Everyone Should Own a Home - WSJ.com Posted using ShareThis
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  Not Everyone Should Own a Home - WSJ.com

  http://jeffnolan.com/wp/2008/10/06/not-everyone-should-own-a...
  57 days ago in Venture Chronicles · Authority: 254

  Not Everyone Should Own a Home - WSJ.com Posted using ShareThis
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  Thats not a knife. This is a knife

  http://proteinwisdom.com/?p=13378
  57 days ago in protein wisdom · Authority: 780

  Columnist for the Australian, Janet Albrechtsen, offers an outsiders view of the current mortgage credit mess: Take nonrecourse mortgage loans. When Australians borrow money to buy a house, they know that if they default and the mortgaged property
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  "stop pimping the dream of home ownership"

  http://managementrandd.blogspot.com/2008/10/view-from-abroad...
  57 days ago in Management R&D · Authority: 15

  Frank words from an Aussie: ... America needs to realize that not everyone can own a home. The American Dream of home ownership for all is a fraud. Politicians who pimped this dream created an unsustainable mortgage industry whose collapse is only

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