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Huckabee Warns Bush of 'Chilling Effect'
December 13, 2007 3:02 PM
ABC News' Teddy Davis Reports: Republican Mike Huckabee warned Thursday that the Bush administration's plan to freeze interest rates for some sub-prime borrowers could have a "chilling effect" on lending.
"The one problem with the plan," said Huckabee, "if it freezes banks from being able to foreclose, if this trend should continue, you really do create a chilling effect on the lending industry because who's going to want to lend money if they don't have the capacity to get their asset back if there's a default on the loan."
Huckabee's warning came during a wide-ranging interview with Bloomberg Television in which the former Arkansas governor tamped down his populist rhetoric while sounding business-friendly themes.
When it comes to dealing with the rash of foreclosures, Huckabee opposes any further action beyond the steps already taken by the Bush administration.
"I don't think it's gone too far," Huckabee said of the government's intervention, "but it's on the edge. I wouldn't push it any further and I sure wouldn’t spend one dime of taxpayer money . . ."
Huckabee said Wall Street bears some of the responsibility for the subprime mortgage mess, adding that lenders shouldn't be "completely let off the hook."
But he is against Congress enacting new predatory lending laws.
"The only thing that can make it worse is to get government involved in over-regulating," said Huckabee. "This is a market issue and I think, once again, I'm far more for less government regulation and the more the government gets in it, the more it gets messed up."
December 13, 2007 in Political Radar | Permalink | Share | User Comments (10)
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Since Mike talks to God like Bush does no doubt,he should ask God to help out the downtrodden Americans. Though the GOP God only cares for the wealthy. Such a loving God is that GOP $$God.
Posted by: AJ | Dec 13, 2007 3:28:35 PM
So it's Ok to have people foreclosed on because some smooth talkers talked them into bait mortgages? Who is Huchabee watching out for here? It definitely does not seem here that he is for the average Joe and Jane that hoped for the best for their family but caught in a squeeze because of corporate greed.
Posted by: lorax_mbell | Dec 13, 2007 5:59:02 PM
Huckabillie is another bible thumping, hallalouyou.. wannbee president because GOD told him so...Just like and just as bad at the train wreck we already have in the Whitehouse. NO THANKS...
Posted by: Joe MUrphy | Dec 13, 2007 6:40:51 PM
Smooth talkers talked them into mortages ? Next they won't belive that Nigerian General's email offering them a million dollars for they're checking account number.
Posted by: cl1107jrf | Dec 13, 2007 6:53:01 PM
One president for Arkansas was enough. Huck is Bush-Lite. If that's possable.
Posted by: cl1107jrf | Dec 13, 2007 7:06:29 PM
The republican party is as immoral as they come. They don't care at all about people who were hustled into this unsafe loans and now have to lose their homes. The reason they don't care is that they're mostly false christians, and they are mostly rich so don't care about people who have trouble paying large mortages.
Posted by: Paul | Dec 13, 2007 8:24:46 PM
I don't care if the lenders are smooth talkers! Since their paychecks are comission based, they have to be. If you bought a bigger house than what you could afford, that is your own fault! Weather you are for the governments help or not, that doesn't make you any more or less of a christian. You have personal issues if you say rich people don't care about others! Not all of them are like that! Go Mike!
Posted by: Ken_man | Dec 14, 2007 3:42:43 AM
Huckabee doesn`t know what he`s talking about. His comment is just another neocon "let`s pretend" issue. The lenders will freeze mortgage interest rates at this time simply because it make more economic sense than foreclosing. If the value of the houses were increasing, the lenders would foreclose in a New York second and take profits. Thus, Bush`s plan is meaningless and in the long run will be of little or no help to the borrowers who will be paying mortgages on dwindling assets for the next couple of years. Bush`s plan is merely a fig leaf to cover up the fact that the predatory lenders got caught with their pants down trying to jack up interest rates on unsophisticated borrowers.
Posted by: Luke | Dec 14, 2007 5:42:28 AM
The mortgage freeze is fuzzy logic, smoke & mirrors. It will help nothing. If they really wanted to help those of us caught in this mess - they would order the lenders to re-write the loans down to what the home values have fallen to. I bought a very modest 1 br condo in early 2006 - apparently just as the bubble was breaking... I had a great career (20 years worth) and was laid off in August. Just coming out of financial difficulties due to a no fault vehicle accident - I had to use my savings to cover all expesenses to October (I've over 40 contacts out there since the first of Aug. when I got word I had til the fifteenth)and my career field and other areas I competent in are flat (landscape architecture). My condo is currently worth 20k less than what I paid for it (159K)... The mortgage lender - one of the largest is about to get it back and at this point I say good riddance - since there is a huge deficite and they don't want to work with me on it. There are millions - exactly like me out there right now. An not due to irrisponsible purchasing. I had more than enough for this 'investment' to do well with in a few years - until the DC powers that be manipulated this housing industry into the shameful shape it's in now. Watch... Soon the huge institutions of money are going to begin folding... This is very serious stuff... And it's about to ge worse.
Posted by: JA | Dec 14, 2007 7:37:45 PM
Mr. Davis' lede is inaccurate. Huckabee said doesn't support a foreclosure moratorium. He just mixed up his buzz words.
"If it freezes banks from being able to foreclose."
Posted by: MikeM | Feb 11, 2008 10:31:29 PM
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