Federal Reserve Bank Encourages Irresponsible Borrowing

Published September 11, 2007

The Federal Reserve Bank is attempting to intrude the government further into the finance market by calling upon mortgage lenders to become lenient regarding repayment terms (“Fed Calls for Loan Leniency,” Sept. 5).

By encouraging such leniency, the Fed will simply elicit further irresponsible consumer borrowing and risky lending. Instead, we should let the market run its course and allow both consumers and lenders to learn their lessons so that the crisis will not recur.

James Rottet([email protected]) is a legislative specialist for The Heartland Institute.

James Rottet