04-25-2008, 06:15 PM
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Senior Member
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Join Date: Mar 2008
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Re: Should there be a Mortgage Rescue/bailout?
But they bail out the cause of this problem and the builders who have plenty of debt because the houses they built are unsold. So why not keep a person in their home it would mean a lot for the cities that have to bear the blunt of this crises and balance the city budget. Empty homes also mean people in the shadows and new crime areas, that results in the cities enforcing laws where they once had not to. And if we ever get ou of Iraq the govt. will have more money to solve a lot more problems.
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Originally Posted by dga
No. I agree that 1) we do not have the money, and 2) taxpayers should not have to pay because people were either too ambitious or too stupid to buy a house within their means, or improve their credit to be able to get a decent interest rate from a reputable lender, but on bad credit were targets for predatory lenders.
On the corporate side, however, and please don't chop my head off, In the case of Bear, there was a broader economic implication and the Fed "bailout" was warranted, because the collapse of a major financial powerhouse such as Bear would have a catastrophic ripple effect on our economy, and economies worldwide. And the collapse of our financial system would have been a high price to pay in order to "teach them a lesson" in corporate responsibility. At the $10 share price they were purchased for, believe me there were no winners (except maybe the bank that bought them).
Barring this scenario, corporation can go broke for all I care.  |
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