I am truly amazed by how many people are against this “bailout” for reasons far beyond the current situation.
I would say the only reason most people are against the bailout is because they have no idea of the severity of the problem and it’s consequences.
@Stupid 177942 wrote:
But the problem must be solved, because thanks to the millions of irresposible borrowers, the banks have turned into real estate agents.
I don’t really fault borrowers too much. The banks knew at a glance these people couldn’t afford loans and in may instances fudged numbers. They knew down the road that the borrowers’ mortage payments would increase beyond their means.
My sister and her husband bought another house a little over a year ago and her credit rating is in the 800+ range. The bank tried to tell her and her husband they could even borrow more than they knew they could afford. But they’re experienced with the process, most of the borrows were first time borrowers pretty much clueless with poor credit ratings. That is why they’re called sub-prime loans. Just because you can lend a risky prospect money doesn’t mean you should.