I know home prices are falling fast, but really, I expected better from the Economist. Just the like our fair Senator Dodd, the Economist tried in earnest to compare the current epidemic of foreclosures to the Great Depression. From CNN, I expect this kind of populist reporting, but not from the Economist.
It's sad to see people trying to evoke a response by trying to tie our current economic maliase the Great Depression. However, as with dear Senator Dodd, the context is all wrong. 100% wrong.
During the Great Depression people were being foreclosed because our economy failed. Businesses failed, jobs were lost, people were truely in need. There were no jobs to be had. People were truely facing homelessness though no action of their own. Today, every Tom, Dick and Harry who is sweating their ARM reset is in that prediciment because they stupid, ignorant, irresponsible and probably greedy too. Unlike during the Great Depression, the people being foreclosed still have jobs, still have prospects for a rich and full life. Yet bleeding heart liberal (note: I am not right winger either) media outlets like the New York Times and CNN continue to lobby for foreclosure relief which flies in the face of common sense. The people who are at risk of foreclosure today have jobs and means to rent a new and possibly nicer home. Hell, they even have the opportunity to own a home again, once their credit rehabs, provided the current legislation proposed, does not pass in any way, shape or form.
The bill is coming due, the dumb ones who over spent are going to have to pay the piper. Nobody dances for free, we all knew that before the mortgage market began to unravel. The Foreclosure Relief Act will forsake significantly more people than it helps out. When I say "significantly more", I mean TONS MORE. Perhaps 10% of the population will benifit from this legislation while 20-30%, perhaps more will be harmed by the Foreclosure Relief Act.
No Bailout for the stupid, ignorant, irresponsible or greedy.