Welcome

Welcome to the learning community designed and managed by Ms. Rita Callahan, instuctor of economics and mathematics. Most of you are current or former students from my classes. I trust you will enjoy this attempt to connect our studies to the real world. From time to time I will make observations on my experiences and things I read. I hope you will comment and add your observations as well.


There is much to learn form others, especially those whose experiences may differ from our own. As I mention elsewhere in this blog, this is my attempt to incorporate 21st century learning formats into the educational experience of my students. Perhaps this will invite some interesting discussions.





Wednesday, June 16, 2010

Should Mortgage holders be responsible for remaining debt?

In today's Washington Post there is an article by Dina ElBoghdady titled Lenders Go After Money Lost in Foreclosure. It is a puzzling question about which party should bear the cost of price fluctuations. The family home is involved which probably creates more sympathy for the buyer. There is also the question as to whether the middleman, lender, knowingly encouraged the buyer to overextend with debt. In this case the reader's sympathy often turns to demonizing the lender, but what is the buyer's responsibility? Perspective probably plays into the reader's opinion.

Reading the comments is instructive with respect to popular opinion. What is right? What will result in the best future for the market? Is that the correct goal? I know I am teetering on the brink of ethics, but what is good economics for the U.S. economy?

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