Credit Crisis: Are Loan Modifications The Answer

Last year we say yet another bubble pop, the credit industry. That bubble did not pop alone. A whole lot of burst bubble followed including the mortgage industry, construction, stock market and the banking industry as a whole.  Countries do start to get nervous when the banking and credit industry that feeds the whole economy starts to shake. Nerves can help us to react and find solutions but it can also make us overreact and come up with inadequate solutions. How should we rate loan modifications as a solution for the credit crisis? The answer to that question depends on who you listen to or which economic model you choose to follow. If you view the economy as a natural process of offer and demand that is best left alone you will probably think that the government?s efforts to bai