Lots of sound and fury, here, so let's see if we can talk some sense.

There is little doubt that lenders in the subprime and alt-A markets have had an effect in pushing up home prices above their long term trajectory. Or that stricter lending standards recently imposed by federal regulators and higher costs of credit derivatives and of participating in the carry-trade have partially closed the subprime refinance window. The result is that foreclosures will increase and will affect lower income borrowers more than higher income ones.

Should we allow the market to clear itself or should we intervene?

If we believe that lower middle-class neighborhoods should be protected from a catastrophic (although relatively short-term) disequilibrium of values brought on by foreclosures and repossessions, then, we should intervene.

And the best way to do that is to have the government (state or federal) insure and subsidize the subprime refinances. The interest rate on the 10-year note is no higher today than it was in 2004, and there is no reason why we cannot afford to subsidize these borrowers until home values catch up to the current inflated prices and those borrowers who are in over their heads can bail out.

That's the issue: tough love or not so much.

Some neighborhoods are beyond salvaging, but consider the overall damage when large numbers of homes across entire cities are allowed to go REO or into foreclosure. Remember, the next door owners own their homes outright or have (had?) substantial equity in their homes. Their neighborhoods are being turned into slums -- and all the fault of Greenspan and Bernanke(?).

The middle class benefited from low interest rates -- the S&P500 is up 75% over the last 4 years and 401(k)s are up substantially, too. IMO it would be selfish and graceless to accept our benefits and turn around and tell lower middle class folks they're on their own.

We may have to bail out some undeserving speculators and others foolish enough to buy into the "American dream" meme. But that's a small cost to pay when justice is at stake.

Remember when the only way to buy stocks was through a full-service broker? Even if you already knew which stocks and how many shares you would want to buy, you would still need to pay the broker's hefty commission fee. You may not have needed or even wanted his or her advice, but you had no choice but to pay the full fare anyway.

The Internet changed all of that. You can now do your own investing without having to worry which particular stock the broker is attempting to push that day. He or she may have had little regard for you and your needs, but primarily had the need to fatten his or her own wallet.

An area of investing that could be made far more efficient is mortgage lending.

Everyday in America, thousands of consumers are victims of mortgage loan officer schemes that ultimately cost the borrower thousands of dollars more than they originally were led to believe. This is so common, that “predatory lending” and its impact is a growing concern among consumer interest groups and government regulators.

Wouldn't it be nice if, like in the ability to purchase your own stocks, you could do your own research and choose your own loan without having to worry about the needs of a greedy, self-serving loan officer (many of whom have been written up, after the fact, in the press)? Their extreme practices have even led some trusting consumers into foreclosure.

Thanks to a mortgage company in Chicago, the Internet and technology, you now have the ability to go online and within about 15 minutes receive a loan approval for their client without having to go through the traditional mortgage process. The system is so sophisticated that it is predatory lending proof. The computer does not have the ability to charge a consumer more because it thinks the borrower does not know any better. It simply evaluates the client and gives him or her the right program at the right price, saving the consumer’s money and time.

Jonathan Cosie, CEO and founder of MortgageTrends & RealEstatePro News, has endorsed this technology as a 2006 Top Industry Technology pick stating that “This is the first, true self-serve online mortgage solution we have ever seen. Other online lenders state that you can do a mortgage online, but the reality is that you either give them information that they sell as a lead to loan officers or they have a loan officer call you. Both of those scenarios often lead to added costs and frustration to the consumer. Our team is very, very impressed with this concept.”

Once your information has been entered, a loan manager works with you to complete the loan package in a low pressure environment. After the financial information has been evaluated, you simply selects the type and term of loan that they are interested in and the system then immediately begins the underwriting process. You can view all actual (not estimated) closing costs for each loan match presented. This leaves little margin for error and no opportunity for predatory lending practices. Once a loan is selected, the loan manager gets the client to closing on time, with no “packing” of fees. No games and no gimmicks.

In the same way that Amazon.com has changed the way consumers buy books, this mortgage company in Chicago will soon change the way that borrowers buy mortgages, forever.