The Los Angeles Daily News posts a column this week about why a government bailout of the current mortgage 'crisis' would be a very bad idea. Read the column for all the details, but the short version is this: although some people will undoubtedly get hammered through no fault of their own, most of the people now in trouble with their mortgage knew the risks they were taking when they signed the papers. To use government funds to secure them would be, in effect, taking money from people who have managed their assets well and distributing it to the people who haven't. It would also reward the mortgage companies who made loads of money off of risky subprime loans.
As with anything in life, there are inherent risks. You risk your physical safety every time you cross the street, you risk your health every time you eat out at a restaurant, you risk your finances when you invest in the stock market. The only difference here is that some people took a risk with something that really shouldn't be risked - their home. Should taxpayers be expected to 'bail out' people who invest in the stock market but end up losing that investment? No, that would be ridiculous.
It's the same with this. Enacting such a bailout would be enacting the essence of socialism - redistributing wealth based on subjective 'fairness' rather than merit, skill, or ability. It's un-American.
There's my two cents.
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