update from last week (really today though)

In my last post, I talked about Obama's push to reform the mortgage and bankruptcy system. The major argument against this reform is that it would increase the costs for these companies that would transfer to higher interest rates and fees for borrowers. Since last week, however, opposers of the reform have won several concessions.

" Democrats in the Houseagreed to limit the measure to existing loans, to homeowners who sought a loan modification from their lenders before filing for bankruptcy, and to people who can no longer afford to pay their mortgages.
Democrats were forced to put off action on the measure when moderates voiced concerns last week that the bill was still overly broad. They wrote a compromise that requires bankruptcy judges to consider whether banks offered homeowners reasonable loan restructuring deals before they weigh in with their own rewrites.
Borrowers also would have a responsibility to prove that they tried to modify their mortgages with their lenders before seeking help in bankruptcy court."

While I don't like the idea of rewarding people who faulted on their loans, I do like the concessions. I think that making sure those who would benefit from this bill have tried everything else before getting a free pass is a very good thing. It would be unfair to responsible borrowers and home owners to give a free pass without ensuring they did their best not to fault.

Also last week, I talked about Obama's plan to put a down payment on health care reform. In his plan, couples earning $250,000 per year and individuals earning $200,000 per year would have an increase in taxes. These people would also recieve less of a tax deduction for donations.

Many opponents of the plan say that this will really hurt colleges and charities that are already suffering by making it unfavorable to donate.

Obama says that the nation cannot afford to wait on any longer to reform health care. "Making investments in reform now, investments that will dramatically lower costs, won't add to our budget deficits in the long term — rather, it is one of the best ways to reduce them," Obama said.

I'm a big fan of a government run health care system. As the son of two doctors, I understand the need for everyone to have insurance. One in four patients coming into the Emergency Room is unable to pay. And since it is illegal for the ER to refuse treatment, the hospitals take over the costs of providing health care. To me it seems like many people can take advantage of these laws to recieve free health care while the hospitals become less and less able to provide that care. While I don't like the idea of schools recieving less money in the form of donations, I think that any move towards the reform of health care is a good one. My generation is the one that is going to take on the cost of reform and it's only fair for the current generation to help us out, especially since they're the one's who will be recieving the benefits.