Wow, this is the kind of stuff that scares the crap out of me:
Schumer calls for subprime bailout (New York Democrat wants funds to help subprime borrowers.)
What we should be doing:
- Borrowers: If someone took one of these loans and they can’t pay, there should be a foreclosure. However, I’m all for allowing them some kind of class action against the shaded mortgage brokers and banks who gave them the loans. But really it should just make them whole and it shouldn’t come from other tax payers. The mechanisms for this already exist and I am sure there is no shortage of shady class action lawyers looking to jump on this bandwagon.
- Lenders: The government should crack down on these clowns.
There are two principles near and dear to me at play:
- Responsibility: If people are too stupid to read their loans or do some simple calculations they probably shouldn’t be buying a house. This country already lets people abdicate personal responsibility way too much. Buying a house is a big responsibility, people shouldn’t be rewarded for being stupid in the way they do it. It’s not fair to all the people who were. The problem is politician’s love to position themselves as “helping the little guy” when in fact they are just letting people shirk responsibility for being stupid.
- Wasting Money: Anytime my tax dollars go to fix someone elses mistake IT PISSES ME OFF. What a waste, I don’t pay taxes to fix other people’s mistakes – I pay them for infrastructure, security, and advancement (ie: science, research, etc.). Of course our government pisses away a lot of money on stupid stuff. But this is really stupid. Let the system sort it out.
Schumer and everyone else behind this: Stop grandstanding and shut the fuck up unless you are going to actually do something reasonable to fix it.
You might enjoy this article: http://patrick.net/housing/contrib/nobailout.html
The home page of the same website is interesting as well: http://patrick.net/housing/crash.html
And what pisses me off is that one of the reasons housing prices went up during the housing boom in places like California, Vegas, NY, Florida, etc., was because people who couldn’t afford a home suddenly were able to buy a house worth more than they could afford. That contributed to driving up the prices of housing for everyone, which priced lots of smart people out of the market who ‘ran the numbers’ and realized it was foolish to take out a sub-prime loan.
Now the smart people who are still renting who didn’t fall for the trap should pay taxes to fix those people’s mistakes? I’m with you — that’s a crock!