Lawrence A. Hunter on Subprime Policy on National Review Online

http://article.nationalreview.com/?q=MGE5MzkzN2ZkZmY2NzEzYTY0NmRlNzg0YWE0NGEwNjI=&w=MQ==

For all of the political distortion and regulatory wedges in the market currently that prevent the ideal solution from coming about, banks nevertheless are engaged in an unlovely, second-best arrangement that allows homeowners to remain in their houses. If the market were allowed to work, banks and homeowners eventually would come to terms, making the best of a bad situation, and the housing market would right itself with the minimum amount of damage possible.

Once the Democrats' banker bailout begins, however, this self-correcting market process will be short circuited, and the situation will get worse, much worse. It is crystal clear what will happen: Banks will accelerate foreclosures in order to take advantage of the government's handout. By intervening in the market, the government, as usual, is going to make matters a whole lot worse, not better.