The two Democratic hopefuls have different views on what should be done about the current housing crisis.

Obama proposes that lenders should face very tough penalties if they steered homeowners into subprime mortgages and suggests that struggling homeowners be given huge tax credits to help offset the trouble they are now facing. But he does not support much government intervention with the current housing crunch.

Clinton on the other hand is proposing a 90 day foreclosure freeze for homeowners with subprime mortgages and freezing the interest rates on adjustable mortgages for up to 5 years. Clinton also suggested that homeowners who cant afford their current payments should be put into government loan programs at fixed rates.

Obama did also mention that Clinton's plan could result in very high interest rates for new mortgages and that a blanket freeze may not be the way to go. Most lenders currently do not support Clinton's ideas since it would lead to a loss of interest revenue for them. But what would be the price for the economy as a whole if the government does nothing but tax breaks?

In my opinion the price of doing nothing would further damage our economy and cause further losses for banks and lends since the average home price is falling it would be unlikely that they would be able to recover the cost of the mortgage and the fact that it takes tens of thousands of dollars to foreclose on a property. I believe in government intervention with support of the FHA to ease this crisis and to help people keep their homes.

What are your opinions on this or interpretations? Voice them here.