Discussion

In a free market, capitalist economy, each person is responsible for his/herself. If a homeowner was manipulated by an unscrupulous lender, there should be some recourse. Otherwise people should be held responsible for the debt they incurred and should be foreclosed on. The taxpayers should not be responsible to bail them out. They signed the contract, didn't they?

Whether we painfullly bail all these people out or not, the housing market prices will revert to supply/demand pricing. If we don't do the bail out, they'll just revert faster.

I feel really bad for those whose homes are being foreclosed on. Some of them are already in their old age and some are single moms with young children. However, like Robert said, if we keep bailing people out, will they learn the lesson they need to learn? People bought homes they couldn't afford. Now that many are losing their jobs, they're also losing their homes. I think allowing them to modify their loans is one of the solutions. That will allow the more responsible ones to keep their homes. For those who bought homes they couldn't afford and have no job or money in the bank at all, even a modification won't work. If a loan modification won't work, then their home should just be foreclosed on. The government is using taxpayers money to bail out irresponsible people. If they don't learn their lesson this time, history will repeat itself.

The current administration acts as though foreclosure is a national disgrace and absolutely intolerable in a civilized society. The underlying assumption is that people subject to foreclosure will all be homeless.

What a crock!!! People who get kicked out of their homes rent or move in with friends or family. They get by and (with luck) become smarter financially.

I can't afford a home right now, so instead of getting a "no doc" loan, I rent. Now I'll be taxed to pay for other people's financial failure. Again I say, what a crock!

I agree on both counts. It is sad that so many people are facing foreclosure. Bailing them out, however, will not help them learn the lessons that they need to learn to be able to avoid financial ruin in the future. They should have been able to evaluate their ability to pay their mortgages and not fall for the sales pitches of the mortgage brokers and realtors. Having done so, they need to take their lumps from the School of Hard Knocks and move on.

Hi Robert

I completely agree with you. I made my first million in real estate and lost it all. While it was both humiliating and devastating for me and my family. I realize that the lessons, the attitude adjustments, the pain and the shame have enabled me to be a more balanced person.

I don't wish it on anyone, however, if it does happen, one lesson I've learnt is to forgive yourself sooner, and start again. Being hard on yourself or anyone else only keeps you stuck. Lighten up, move on and you'll start to make a better life soon enough.

I strongly agree with you on this one. By allowing government bailing them out they are further entrenching themselves further into indebtness to the government. Government with all its cronies then have too much power over generally good people. It becomes a perpetual cycle. It will never end. What ends is the freedom of the said citizens. Tragic.

Rewarding stupid behavior and/or greed is not a good recipe for enahancing the future financial security of a household, a company or a nation.

Bail them out now and you will have to bail them again. I think as you rightly implied there is more lessons to be learnt in failuire than in success.

They made the problem and now they want to save people by giving them the solution they, who made the problem, want. No as hard as it sounds we all must learn from our mistakes.

Bail outs are never productive. They create more dependance on the giver. Just like the stay cat who has been living off of wide rodents, once it begins to take handouts from the little old grandmas, becomes lazy and works for food no longer. I too have been in need of the basics of life. By not having relatives, friends or even the govt. to go to, I believe that I was able to open my mind and find new ways to work and earn what I needed. Then with careful planning, I was able to get what I wanted as well.