Tuesday, September 09, 2008

Government bails out mortgage companies-a sign of irresponsibility in society?

On Monday, the government decided to guarantee the loans of Freddie Mac and Fannie Mae, two private mortgage companies that provide funding for 3/4 of home loans in the US. These companies made millions while times were good, but now are being bailed out by the government because of the sub-prime mortgage mess.

While the presidential candidates have been clamouring for the government to do something about the mortgage crisis, in fact, this act may anger many voters. See http://news.yahoo.com/s/nm/20080909/pl_nm/usa_politics_bailout_dc_1. The majority of home owners have been responsible with their mortgages, and this action seems to reward risky and irresponsible behavior by homeowners and companies.

Is this government bailout a sign that people today do not want to take responsibility for their actions?


Chad Turner said...

Yes it is. I think in today's societ our kids aren't being raised to know right from wrong. I do know that a lot of parents get it right but many do not. It is ok to spoil your children as long as the know the value of the dollar and understand that if you don't have the money you should not buy it.

Anonymous said...

To many people think the government is better equipped to take care of them. Socialism has failed around the world and will fail here. This a huge debt that all of us will have to pay for sooner or later.

Mr. E said...

I think if the "Big Guys" can't control their finances then they should suffer the consequences just like everyone else. We may suffer some hard times because of this, but someone who is more responsible will come in and pick up the slack.

Just how "rich" do you have to be for the government to bail you out when you are in trouble, or just how "poor" do you have to be for the government to ignore you and let your business go under?