Short-term fixes, long-term effects

Marc Thomsen's letter published Sept. 22 regarding the makings of the current mortgage crisis was right on target.

Ten to 15 years ago, there was well intentioned political and social pressure put on the lending industry to extend the dream of homeownership to families who did not qualify under the products and standards available at that time.

This is a classic example of one of the fundamental themes in Steven Levitt's "Freakonomics" _ unanticipated consequences due to pursuing short-term fixes without considering long-term effects.

We, directly, through our government or through activists, tampered with a rational, established system to address a perceived inequity.

Everyone though it would be fair and free. We now know it may cost us more than $6,500 each.

The lesson? The next time a politician, activist or community organizer contacts you to address some economic related social issue like why some folks have to use payday loans or pay more for a credit card, car loan or equity loan, maybe the answer you should give them is: "Been there, done that, it failed."

Jeff Grady

Palatine