2008/09/26

Bail-out WHO?

So let me get this straight: The banks wrongly loaned money to people who purchased houses and could just barely make their house payment... When the economy sagged a bit (due to high fuel prices?) they suddenly couldn't make those mortgage payments and defaulted on their loans. 

Now the banks are in trouble because so many people stoped paying their mortgage payments. 

So... Gee Whiz... the solution is to forgive the bankers the bad debt and forget about the home owners.

Why not pay off part of the mortgage of those home owners so that they can continue to make their (now lower) payments and move back into those abandoned houses?

What I asked my representatives is this: "Why is welfare for people wrong, while welfare for the banking industry is right?"

2 comments:

Lawrence Lile said...

21st Century has now brought us to an interesting irony. We have decided, as a country, that Socialism for the rich bankers is OK. (I always thought it was OK for the poor guy too - myfamily would have starved out in the 1930's if it wasn't for the WPA and other "socialist" programs)

So China is now using Capitalism to save Socialism, whereas the US is now using Socialism to save Capitalism.

Brad Dre said...

Also, don't forget that the "crisis" is not just that too many bad mortgage loans were made. In the world we used to live in, a doubling of the foreclosure rate would just be bad. No, unregulated banks created credit out of thin air when they innovated new secondary bonds. The problem is that these secondary instruments are literally worth nothing now because people don't understand what value they were based on. Also, there was some good old-fashioned fraud involved too. I certainly don't support homeowners who irresponsibly take a loan they cannot afford. But let's keep our focus on the real crime here. Will the banksters ultimately have to accept that in order to "save the system", mortgage debt will have to be forgiven?