Virtue Rewarded

This is how the market rewards virtue and attempts to right itself.

WASHINGTON (AP) - Homeowners around the country are scrambling to refinance their mortgages at the lowest rates since the early 1960s as the economy staggers through what's likely to be the worst recession in decades.

On Wednesday, some mortgage brokers were quoting mortgage rates of close to 4.5 percent for people with strong credit and hefty down payments.

It was the best news in months for anyone looking to lock in a 30-year, fixed-rate mortgage. But it was not expected to be a cure-all, and borrowers already in danger of foreclosure probably won't be able to take advantage.

The thrifty are rewarded and the irresponsible are left to wallow in their self-created misery. Responsible borrowers get lower payments while banks and mortgage brokers make money with the increased business.

The temptation will be too great. I predict our feral government will muddy this rare occurrence of market clarity with some type of ham-handed bailout or intervention within 60 days...