In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review April 4, 2008 / 28 Adar II 5768

A better solution for the housing mess

By Linda Chavez

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http://www.JewishWorldReview.com | With the housing mess threatening to send the economy into a tailspin, politicians are scrambling to come up with a quick fix. Senate leaders this week announced they've come up with a housing bailout bill, including a $4 billion grant to local governments to buy foreclosed homes, authority for states to issue bonds for refinancing sub-prime mortgages, and a $7,000 tax credit for those buying new homes or existing houses in foreclosure. The bipartisan compromise package will cost taxpayers plenty but does little to alleviate the real problem. That's because politicians are scared to death to put the blame where it belongs.

Everyone is willing to cry foul about the unscrupulous lenders who suckered borrowers into sub-prime loans that ballooned after a couple of years, making payments unaffordable for many. But what about borrowers who behaved irresponsibly in the first place? The fact is, Americans have been living beyond their means for years, and now the bill has come due. As usual, we expect someone else to pay it.

Borrowers have gotten in trouble because they bought houses they couldn't afford, often with little or no down payment, and accepted loans that sounded too good to be true — and were. Banks used to tell prospective homeowners that they could qualify for a loan on a home that was roughly three times their yearly salary. Banks also required 20 percent down. So, if a family earned $75,000 a year, they could buy a $225,000 house, but they had to have saved $45,000 to put towards the house in order to qualify.

But at the height of the housing boom, some lenders were willing to lend borrowers five — even 10 — times their annual salary. And if the borrower didn't have the down payment, the lender would finance some or all of it, too, with a home equity loan. Even the closing costs on the sale — amounting to thousands of dollars — could be worked into the loan. In order to keep the payments within reach, lenders set very low interest rates for the first few years on adjustable rate mortgages, which then went up sharply. And those most likely to sign up for such loans were the buyers with the worst credit histories, who couldn't qualify for more traditional mortgages.

Economists and others warned of a housing bubble about to burst, but builders kept building — even when their new houses were sitting unoccupied for longer and longer periods. And existing homeowners refinanced their homes, taking out their rapidly inflating equity to buy new cars, furniture or vacations.

The whole process operated like a giant Ponzi scheme. But, eventually there aren't enough new chumps to buy into the scheme to keep it going forever. And as soon as those adjustable mortgages started to skyrocket, borrowers who really couldn't afford to be buyers started falling behind in their payments.

Now Uncle Sam wants to ride to the rescue. But, at whose expense? Those who will be most hurt by a bailout are the people who scrimped and saved for a down payment on a home they could afford and did without luxuries in order to pay their bills. No one is going to reimburse them for the fall in their home's value caused by this mess. Instead, they'll be paying higher taxes so that someone who had lousy credit and didn't know how to save could afford to buy a home above their means.

The only thing the feds should do now is make it easier for borrowers with good credit histories to buy existing inventory. One of the most effective ways to do that would be to use tax policy to incentivize buyers. The Senate proposal includes a tax credit for individuals who buy houses now in foreclosure or new, unsold inventory, but not much else.

One idea to spur more sales would be to allow individual investors to write off losses on rental property against other income. Under current law, if you own a house you rent out, you can only take losses against profits when you sell. Since the rent a landlord can charge often doesn't cover the entire mortgage, taxes, insurance and upkeep on the property, many landlords let houses fall into disrepair and aren't likely to buy newer houses to rent out.

Why not allow those individuals who can afford the down payment to invest that money in buying up existing houses to rent out? If they could get even a partial tax deduction for the difference between the rent they receive and their expenses, it would make owning rental property a more attractive investment. And the government would eventually recoup the tax revenue when the house sold.

Many former homeowners are going to end up back in the rental market. We could help them — and the rest of us — by encouraging other buyers to purchase those homes as rental properties.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JWR contributor Linda Chavez is President of the Center for Equal Opportunity. Her latest book is "Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics". (Click HERE to purchase. Sales help fund JWR.)

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