fact check needed on Yahoo article about $26B Mortgage Settlement

[steve2470]

http://finance.yahoo.com/blogs/daily-ticker/26b-mortgage-settlement-good-banks-not-good-homeowners-154031911.html

The article link is at top. This caught my eye, in particular: " The deal may, in fact, hurt housing by sending a message to people who've stayed current on their mortgages that irresponsible behavior is what gets rewarded in America. That, presumably, is not the intention of policymakers but the "moral hazard" fallout from the settlement. More Americans may "walk away" from uneconomic loans, which will put additional pressure on local housing markets. "

Thanks for your time.

[russspeakeasy]

1. There are some really stupid people in this world.

the writers for yahoo as a prime example.

[MrCoffee]

2. I think the point is more toward the write-downs, short sales, etc.

The banks have been handed $20 billion to clean up their books. I think the point is that the $20B will be used to adjust mortgages for people who are underwater, which I suppose will make those who aren't feel cheated.


And "That, presumably, is not the intention of policymakers but the "moral hazard" fallout from the settlement." is a really clunky sentence.