During the Palin-Biden debate, Biden made an incredible statement that defines the essential difference between democrats and republicans and between socialism and capitalism. He said he thought that a bankruptcy judge should not only have the power to lower a debtor's mortgage interest rate, but that he should have the power to lower the principal amount as well.

Think about that and think where that would lead. Assume a debtor owes $100,000 on a $125,000 home and is paying 7% interest. Assume the debtor files bankruptcy and by luck of the random selection process draws a very liberal judge. Assume the judge, intending to prevent a foreclosure, lowers the debtor's interest rate to 1% less than the bank pays for the money it borrows and lowers the principal amount to $50,000. 

Consider, that by taking $50,000 from the bank, that there is $50,000 that the bank will never recover and $50,000 that a creditworthy customer can't borrow. The judge trashed the mortgage and trampled on the common law right of "freedom of contract" that has been determined to be a Constitutional right under the Fifth Amendment which provides "No person. . . shall be deprived of . . .property, without due process of law." That has been the law since at least 1904 (Great Southern Fire Proof Hotel Company v. Jones, 193 U.S. 532). But, of course, with another liberal judge or two on the Supreme Court, who prefer to play midnight golf with the law rather than adhere to the Constitution, that could change. 

No longer could you depend upon a court enforcing a written contract. "I've got it in writing" would no longer have any meaning. A bankruptcy case would become a crap shoot with the outcome dependent upon the liberality or conservatism of the judge. "Equal Justice Under Law?"  Fugedaboudit.

Such an action would be a purely socialistic taking from a deserving one and giving to an undeserving one. And that take us back to how we got into this mess by purposely granting large loans to non-creditworthy borrowers with no money down and adjustable rate mortgages.

Is that where you want to be led?