Tuesday, March 04, 2008

Bernake Goes Bonkers

Urging a write down of mortgage balances.

“Federal Reserve Chairman Ben S. Bernanke, battling the worst housing recession in a quarter century, urged lenders to forgive portions of mortgages held by homeowners at risk of defaulting.

`Efforts by both government and private-sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done,' Bernanke said in a speech to bankers in Orlando, Florida, today. `Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.'”
So what about those folks who didn’t improvidently buy more house than they could afford? Who have been paying their mortgages on time? Or even, Heaven Forbid – paying off their mortgages early? Who didn’t get into the “Flip This House” speculative fever?

Short answer: You’re Screwed. Not only are you going to be expected to pay every dime on your mortgage, but you’re going to have to dig deep to pay for bailing out the speculators.

Sucker.

It’s the standard issue government answer – one that ‘compassionate conservatives’ and ‘progressives’ all agree on. People who act responsibly and provide for the future are simply piggy banks for the government to use to protect the irresponsible.