Rick Lowe
On Tuesday Mr. Franklyn Wilson and Mr. Lynden Nairn were defending their plan for the PLP to "help" defaulting mortgage borrowers. See background here… and here…
The gentlemen, both avid supporters of the PLP, insist their election time announcement has no real downside, Mr. Nairn saying it would be a win-win for everybody".
It is confusing that Mr. Wilson a real estate developer and partner in an insurance company and agency and Mr. Nairn an insurance executive would call on government to implement such a plan when they seem to be well placed to help borrowers in distress.
If what they are suggesting is so fool proof there must be an opportunity for entrepreneurs like them to open up or expand their business. Why socialise losses for everyone if it's such a win-win and there is "no fiscal risk" as they suggested in The Tribune Business recently?
It's simply bad public policy to expect the government to be the lender of last resort. Ever heard of Fannie Mae and Freddie Mac?
