Some Truths About the Housing Bubble and the Credit Crisis

From Sea to Shining Sea ^ | 4/1/08 | Purple Mountains

[PurpleMountains]

Both contenders for the Democratic nomination for president, Hillary Clinton and Barack Obama, have made statements about the efforts of the federal government to combat the problems caused by the collapse of the housing bubble. To paraphrase both of them, what they are saying is that it is somehow immoral to take steps to protect the financial system without bailing out individuals who, through their stupidity and/or their selfishness, are in danger of losing their homes. Both would turn over the tax money of working Americans to people who overreached themselves or are the victims of their own greed.

It is the responsibility of the federal government to protect all of us from a complete meltdown of our credit markets

[T.L.Sink]

It’s certainly NOT the responsibility of the federal government to bail out mortgage holders. With all the non-stop spin about “predatory lenders,” the very underreported fact is that many banks were politically pressured to make these sub-prime loans to people who clearly weren’t credit worthy. Also, excuses are made for the borrowers that they didn’t understand adjustable rate mortgages. How can any person with half a brain commit to a six-figure debt obligation without also giving a real estate attorney a few bucks to explain to him the meaning of the contract he’s signing and protect his interests at the closing, etc.? Whatever happened to common sense and personal responsibility? Not only that, but in any federal bailout plan it’s YOU and I who will be doing the bailing with our taxes!!