[4RE KLR]

That is why I believe the FED should not lower rates. I think it would be a bailout.

Look everyone is stating it is the borrowers fault. I for one (my opinion) disagree. If these creative exotic mortgage plans had not been created and made available by the mortgage companies no one would have them. The mortgage companies created these exotic loans to get people to refinance their existing loans so they could get the new fees and added interest. That is the truth of the matter. I have had situations where the mortgage companies themselves come up with some stupid loans to get the deal refinanced.

They told my homeowners just that. Why make big payments now when you can ride the appreciation wave. Well we all know the wave at one point will hit the shoreline don't we? The idea was to "later" refi again, let them collect more refi fees and add new interest to old money.

Surely you have heard of decreasing term loans? If they can have a borrower pay interest only for a few years and then refi again, they get the best of both worlds. Double fees and new interest on old money.

I think Countrywide needs to fail just like every other business that is not run properly. I'll bet you money, marbles and chalk that the CEO of Countrywide has a very nice retirement umbrella, even if they di fail.