Jobs should be job No. 1

Re: 'Bye-bye equity' (Feb. 26)

Dear Editor:

Everything Lou Barnes says is correct, but as I see it his prescription to restore adequate credit misses the real fundamental remedy -- namely JOBS. Lenders are not lending because the incomes, at the margin, are simply not there.

As Washington creates more and more uncertainty (including potentially new costs of business), businesses are not hiring new workers. It is true that lenders are (reacting in a "bipolar" manner): Half the government is saying, "Build your balance sheet with our zero percent money"; the other half is saying, "Don't foreclose, and lend more money."

Any rational banker would choose the former.

Becker Kline
Becker Kline Co.

Dear Editor:

Lou, you couldn't be more correct about the financial/credit situation. I have been selling real estate for over 30 years and the current credit situation is ridiculous. For a few years money was being thrown at unqualified buyers, and now you need a scavenger hunt for it.

I've had clients -- with longtime perfect credit records and who don't carry consumer debt -- turned down for perfectly doable mortgages, either because they are self-employed or are retired.

It is so frustrating. One lender actually wanted to have a copy of the insurance policy of a vacation cabin! It's seems to be all about politics and has nothing to do with practicality.

How are we going to get this changed? I have buyers wanting to take advantage of the homebuyer tax credit, the low interest rates and the low housing prices, and we are fighting an uphill battle.

Carla Reeves
Village Properties
Santa Barbara, Calif.

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