Well factually speaking isn't this what the whole bailout plan is all about? Borrows basically getting FREE HOMES and the responsiblity falls on the Gov't which there trying to pass on to us!
I rather go to my neighbor's up the street who I barely see and offer to buy their home for them than give the gov't one stinkin dime for a bailout!!
Well, you are correct on one level. The bailout basically says that borrowers are innocent. But we have screwed this country up so bad between CRA, F&F, Wall Street going along with F&F, Greenspan keeping rates TOO LOW for TOO LONG, etc.
We need to rethink the Fed model. I contend that Fed intervention policies is a major cause of our current down business cycles. E.g. Greenspan and Bernanke kept the Fed Fund rate target too low for too long. Thus, we created too excessive credit, induced a speculative “bubble” in the housing market. All this has resulted in an abnormally low savings rate (and too much spending by borrowers).
The party is now over.