Early Retirement & Financial Independence Community - View Single Post - Do you want to pay for the Sub-Prime freeze?

pedorrero · 12-04-2007, 09:30 PM

Not sure if it was mentioned here, think so, but a big problem with these "work out" plans is this: It involves the potential for the government to change the terms of what was (presumably) a voluntary, yet binding legal contract (the mortgage or loan). This does not sit well with us closet libertarians. Of course, the government has a long history of violating private contracts. Sometimes perhaps for a good cause (many property deeds still carry language that a property can't be sold to "Negroes", for example), other times more dubious ... the abrogation of gold clauses in the 1930s comes to mind. Or ask a local Native American about the U.S. Government itself has honored its own contracts. Hmmmm.

12-04-2007, 09:30 PM	#104
pedorrero Recycles dryer sheets Join Date: Dec 2006 Location: Florida Posts: 243	Not sure if it was mentioned here, think so, but a big problem with these "work out" plans is this: It involves the potential for the government to change the terms of what was (presumably) a voluntary, yet binding legal contract (the mortgage or loan). This does not sit well with us closet libertarians. Of course, the government has a long history of violating private contracts. Sometimes perhaps for a good cause (many property deeds still carry language that a property can't be sold to "Negroes", for example), other times more dubious ... the abrogation of gold clauses in the 1930s comes to mind. Or ask a local Native American about the U.S. Government itself has honored its own contracts. Hmmmm. __________________ I've got nothing against an honest day's work, provided that someone else does it.