It appears to be the classic liberal / conservative debate. The kind of thing that makes election year politics so red and blue! One side wants to be the government that helps people in trouble, while the other doesn’t want to extend that helping hand of government to businesses who should have known better in the first place.
Clinton and Obama both have programs ready to put into action once elected to help by offering some type of assistance in the sub prime mortgage crisis to the borrowers who are in fear of or who are actually loosing their homes. Billions of dollars of government money to the rescue; that in reality we will have to borrow to give out. Sounds a lot like the Bush stimulus package that we had to borrow for not that long ago; that check is still in the mail as well.
McCain says, “Whoa thar fellas, not so fast.” We can not be bailing out entrepreneurs and mortgage lenders who lent money to people, that didn’t have the ability to pay the money back in the first place. Its time we let the markets adjust themselves. Let the bad belly up and the good will survive and be stronger. Adam Smith and the free market stuff that in reality got us into this mess in the first place.
Bailing out lenders and people who made millions on mortgagees is not the same as bailing out or providing assistance to homeowners who are loosing their homes. We live in a world where everyone wants to own their own homes but that home comes at a price and to bail out some while letting others continue to just get by, has its problems. Yet the mortgage crisis is no longer an isolated market failure any of us can afford to ignore.
Congress, the administration and a FED that didn’t seem to be too concerned despite warnings for the last several years have all supported lending practices that allowed banks and mortgage lenders as well as speculators and brokerage houses to mix all of their funds in one pile. This has placed out entire banking system in jeopardy. The FED coming to rescue with a thirty billion dollar guarantee is just the tip of the iceberg.
Cold hard fact of the matter; will we bail out so unscrupulous people? Yes. Can we not afford to save some people from walking away from their homes because of lenders who lent money to unqualified candidates, knowing full well that they couldn’t afford the homes? No.
We as the American people find ourselves between a rock and a hard place. In order to save the poor and in trouble we have to also save the rich and getting richer. You would thing that no one had seen this coming liberal or conservative and then again you might think, its just business as usual no matter who is in office!