 Quote:
Originally Posted by Gumby
A
You can feel morally superior and berate the borrowers for their irresponsible behavior all you want, but it won't change these economic realities. I would prefer to save the economy than crater it just teach a moral lesson to foolish and/or naive people.
|
OK.. then where was the gvmt when the S&L crisis was happening  (remember, they only paid of depositors) There were neighborhoods in Houston where 50% of the houses were foreclosed.. Housing prices dropped by up to 50% (my house for one, me being on the good side).. it created an opportunity for people to buy a house when before they had no chance to do so... housing was affordable... and Houston still is one of the most affordable cities to live in...
So, you can say 'morally superior' to me.. so be it... if someone makes an irrational decision and it craters they should live with the outcome.. and if that is having a foreclosed house.. so be it... if the economy goes into recession.. so be it... it will happen sometime as it is the business cycle... something will trigger it.. why not this?
|