Of course it isn’t fair to force people who have paid their mortgages faithfully to bail out those who have not.
However the question itself is misleading if not down right fraudulent.
There is nothing in the law forcing people who pay their mortgages to bail out people who haven’t. It’s a false proposition. If one were to look at every government expenditure like this one would have to ask if it’s fair that people who build fighter-planes in their backyards should have to pay Lockheed huge profits for building war planes for the American military.
The real reason it is not fair to use taxpayer funds to help people who cannot now pay their mortgages is that the lenders themselves should be bailing them out.
After all, it was those lenders that took advantage of Congressional largess, to put it mildly, and began to loan money to anyone who could make a mark on a contract.
Senator Phil Gramm made sure that was possible by backing unconscionable laws. He did so knowing all the time that the Treasury would be forced to bail out large U.S. bankers and investment houses that were involved in mortgage backed derivatives without caring the least about the financial situation of the down-in-his-luck homeowner. In fact, what our wonderful banks did was sell these derivatives to unsuspecting or collegiate banks in Europe, Asia, and even in Africa lying all the time about their lack of fundamental value.
The Untied States is very fortunate that we live in the 21st Century because in earlier days such action would be a reason to go to war against us. European and Asian nations have gone to battle over far less than having their banks and citizens ripped off for trillions of dollars. The thing that has saved us from a complete economic meltdown (which may still be coming) is that many bankers abroad knew full well that they were buying questionable paper and so resold it to the next sucker in line.
As they say, That’s the facts.
The American people are starting to realize that banks and brokerages are to blame for our current economic woes although the mainstream media, and especially financial media outlets such as CNBC and Bloomberg are doing everything in their power to hide this.
Those public relations professionals who came up with the nonsense that losers were getting loans should be in prison but they sold it well to the media because the media relies on advertising revenues to survive advertising money from the very banks and lenders they would have have to criticize if they told the truth plainly and succinctly.
It is the Attorney General, Eric Holder, who has the power to indict the executives of mega banks and other huge lenders who twisted the law to their own benefit. They knew, or should have known, what would happen in the end. They certainly knew what was going to occur as far back as 2005 long before the proverbial fertilizer hit the fan.
While Mr. Holder could do something about this catastrophe fear among the nation’s champions of free global markets has thus far stopped him.
These people believe and perhaps rightfully that our entire capitalist system could disintegrate should the average Jane and Joe recognize the true misfeasors and felons who caused what is the greatest economic tragedy since before the Great Depression of the 1930s.
It seems certain that the President of the United States and the Secretary of the Treasury believe the same along with European and Asian leaders across the globe. Thus we may never see the real criminals in prison.
Our government is wrong this time. While there should be some harsh adjustments to the laws surrounding lending on all fronts, this does not mean that some better form of capitalism is not in the offing. Remediating the law is also not occurring, not in Congress and not in the White House. This is a disgrace.
Once the laws were repaired and enforced the only thing we should go on to consider is this:
How much is too much?
Once we find that answer things will become more evenly balanced and the system can go on without the once-a-decade shakeups that leave so many blameless victims in their wake.