Tuesday, June 29, 2010

On bail-outs, the hard-working, bill-paying folks in the middle get squeezed

The unfairness is astounding. Poor behavior is rewarded, while playing by the rules and forgoing current consumption to pay one's bills is penalized.

A larger price will be paid because of the moral hazard. Additionally, since we are asking our children to pay for mortgages they did not benefit from, how will they be denied the same?

Pandora's box is open.

PAJAMAS MEDIA | Victor Davis Hanson WRITES:
Emblematic of the anger at both top and bottom was the 2008 meltdown: those who had not played by the rules still got their mortgages, then defaulted, and left the taxpayer with their bills; those who made the loans and profited without risk, took the bailout money, and left us with the cleanup. Those in between with underwater mortgages and higher taxes pay the tab.

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