Welcome to the Free Market system, where whatever happens, happens, until it’s the very wealthy that’s affected. I’m tired of these taxpaper bailouts for businesses who knowingly made foolish bets. The fact of the matter is, loans were given to unqualified borrowers. Those loan contracts were then sold off in the form of securities to investors, who may or may not have known about the riskiness of the loans. When people couldn’t pay their mortgages, they defaulted on the loans. Factor in a bad economy, made worse by the job market going down, gas prices going up, and you got worthless securities. Instead of bailing these lenders out, we should be filing more criminal charges and putting people in jail. This is basically socialism for the wealthy. Even economists and conservatives think taxpayers are getting a “raw deal”. If I forget to pay my credit card bill, do I get a bailout? No, I just get charged more, and my interest rate goes up. Why should people who live within their means be forced to bail out gamblers and cheaters?
Stop the housing bailout!!
Great article on how the government is ok with bailing out, providing tax breaks, and subsidies, to large corporations, using YOUR MONEY. But when it comes to you and helping you during hard times, you get nothing, because helping you is deemed too expensive.
Bear Stearns is too important to allow to fail, but millions of homeowners can end up on the street when home prices plummet sharply. The Wall Street holders of overvalued mortgage pools are too important to fail, but homeowners drowning in debt are told to keep paying not matter what.
And Gretchen Morgenson, in the NYTimes, opines on how the Fed bailout of Bear Stearns, “Crosses a Line”.
And as Paul Krugman writes in the NYtimes:
JPMorgan to buy Bear Stearns for $2/Share, with help from the Feds. Folks on top thought it would be ok to give out mortgages and credit/loans to people who couldn’t afford it. Now, we’re paying for the cockiness, greed, and stupidity of the elite.