Why should the taxpayer bail you out when you make a bad decision?

Question

both the borrower and the lender were wrong in the forclosure mess. both should have to suffer the results. we can't keep on depending on government, our national debt is already out of control, we can't saddle future generations with our mistakes. its not right. bottom line- be responsible your decisions. don't dump them on some one else.

Answer 1

I agree and am very frustrated -- especially at the throngs of people on this very board that try and blame others for their problems.

With that said, it is bigger than just making people be responsible.  So many people were stupid and so many lenders were greedy that we're now in a situation where some help has to be issued -- otherwise the whole economy will get worse and worse.

It's like if you're on a boat and a bunch of people decide they want to swim.  You tell them not to cause it's dark, the water is cold and the current is strong, but they jump over the edge anyhow.  They eventually start to struggle and are grabbing on to the boat.  Is it your job to pull them back in and risk your life?  No.  Is it your fault that they didn't slow down and think about what they were doing?  No.  But if you don't stop and help them get back in the boat, they're just going to keep struggling and pull you down too.

It's not a good situation and it makes me even angrier to think about it that way, but it is what it is.

Answer 2

The majority of those foreclosures are with minorities.  Otherwise the situation would be viewed as irresponsible people making stupid decisions.  I paid for my house, they can pay for theirs - or not.  But, not me.

Answer 3

So far nobody is doing that.

The taxpayer is not paying any money.  

So far all the FED has done is provide loans. It is the banks and investors that hold the mortgages that are taking the hits.

Even the money going to depositors from the IndyMac failure comes from the FDIC which is paid by all the banks.

Anybody that is telling you it has cost the taxpayer (at least up to now)  is full it.

Answer 4

Because people are stupid and can't help themselves so they need to be babysat by the government.

Fortunately for them, the Feds will bail them out, and they'll continue to live in their homes that cost 5x their incomes, and they'll get to pay that 5% interest rate.

meanwhile, we're stuck in a 2bdrm condo, 2x our income, 20% down, at 6.5% because we did conventional loan terms and were responsible people.

Answer 5

Oh, I fully agree.  I've just been looking on here for info about student loans as I'm close to paying off my other debts and have now turned my attention to my student loan.  I'm keen to pay it off asap and not forget about it and hope it'll go away.  The next few months / years look set to be trying ones and I'd love to be able to buy a house but I have been totally priced out of the market (by what I see as irresponsible lending / borrowing by others in the past few years).  I'm therefore putting my head down, making savings where I can, working hard and paying back what I owe - what I borrowed in good faith.  I wish everyone else would do the same, if we were all of this mind-set the country wouldn't be in this state and we might all be better off.  What bothers me most is that I'd like to have something to pass on to my children but the way things are going only the elite few will have anything decent to leave their children in the future and the whole financial struggle will continue for generations to come - how awful!