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HOUSING

It is almost universally agreed that without establishing a bottom in the decline of home prices, we will not be able to stabilize the economy. I agree.

But, the focus of buying up bad mortgages and/or changing bankruptcy laws to allow judges to rewrite mortgage contracts to shove down lenders' throats, isn't the answer.

Precedent shows that the idea of allowing judges to reset mortgage rates will also fail.

Bankers who already worked with homeowners in default of their loans by lowering interest rates on mortgages, and therefore their monthly payments, are finding that within six months, more than 50% of those mortgages go back into default. That's not working.

So, how effective might a judge be?

Next: The devil is in the details…