Common-sense help for struggling families

Ms. Hernandez says income loss is what triggered the foreclosure. Her husband, a Realtor, has been looking for new work. She had been a stay-at-home mom but now has a full-time job. "I have to pick what bills we pay," she says. "If there is money left over after paying the mortgage, it goes to food, diapers, child care, gas. We did not live nor did we buy beyond our means. We had excellent credit, and were very responsible with all of our bills. Now we are scrambling to find ways to make ends meet."

The Obama administration proposes a loan modification program to allow millions of "responsible homeowners" to refinance to interest rates as low as 2 percent.

Some on the ranting right, such as the CNBC commentator Rick Santelli, accuse the Obama administration of bailing out "losers," though the hypocrisy of a Wall Street analyst complaining about a bailout for "losers" was stunning.

Still, Mr. Santelli's remark is reflective of a sentiment that's out there: While some Americans believe that banks and insurance companies are "too big to fail," some Americans believe their neighbors are "too little to save." I don't get that. Who wants to see properties in foreclosure in their neighborhoods? Who wants to see people who are still employed lose their homes? Why not push the lenders to readjust terms with the borrowers as the housing market goes through this massive correction?

That's not wild-eyed socialism. That's the credo of realism, rational caution and common sense.

Dan Rodricks' column appears Sundays on this page and Tuesdays in the news pages. He is host of the midday talk show on WYPR-FM.