A government bailout of the housing market is both fiscally and morally irresponsible; it is an unfair subsidy being paid to the wealthy bankers, the greedy mortgage brokers, flippers, and yes some homeowners, and the incautious, with little or no benefit to those paying the bill--taxpayers.
Why should responsible Americans be
forced to pay for the mistakes of others?
A bailout is morally irresponsible because it encourages reckless and irrational behavior.
- A bailout tells responsible Americans that they are suckers. If responsible Americans had been smart, they would NOT have overextended themselves, purchased homes they could not afford, and taken out home equity loans based on the paper value of their property.
- A bailout will force Americans who acted responsibly to pay for those who did not. The average American -- who saved and scrimped for years to buy a house, but could not because speculators and over-extenders boosted home prices beyond affordability -- will now be forced to pay for the homes of those who were less scrupulous.
- A bailout props up over-inflated housing prices, thereby putting homeownership out of reach for young families and responsible Americans who recognized that there was a bubble. The housing market needs the correction that the bailout seeks to prevent because the average American cannot afford to purchase a home. "You cannot be both in favor of affordable housing and in favor of propping up home prices!"
- A bailout creates perverse incentives. Rather than punishing their behavior, it encourages fiscal irresponsibility among bankers, mortgage brokers, speculators, and refinancers. These folks made money hand over fist in the past nine years (remember, homeborrowers who tapped their home equity received cash money to pay for Escalades, vacations, and stainless steel appliances; now they want you to pay for it!). Why change your behavior when you benefit from it?
- A bailout shifts the risks of falling market prices from financially secure banks to the American taxpayer. As a result, either taxes or the federal deficit will skyrocket! This is a government handout that we simply cannot afford and, moreover, it is wrong!
A bailout is contrary to the free market principles upon which our economy is based. It jams a huge wrench into the market correction, with negative effects that will be both severe and long-term.
It will truly be a sad day in America when our politicians vote to bail out the few from their irresponsibility to the detriment of the many who were responsible.
We, the American people, deserve better.
Stop the Housing Bailout!!!
