With all recent news regarding the impending mortgage crisis, especially the FDIC takeover of IndyMac Banc Corp., I think it is time to stop bailing out large corporations and simply let them fail.
If “we the people” keep bailing out these large corporations, then the large corporations will never need to exercise restraint. They will be able to make enormous profits off of us by making foolhardy business decisions knowing full well that should things turn out badly, the people that they just raped will offer up their hard earned tax dollars to shore up the corporation so they can do it all over again. We need to end this vicious cycle now.
If we bail out anyone, it should be ourselves. I say, take whatever money we are planning on using to bail out the large mortgage lenders and secure the sale of the their loans to more solvent banks. I don’t think we should be helping out the banks, we should be helping the people. We should restructure and underwrite the loans that are failing and offer them up for sale to banks that aren’t failing. This way, we avoid the looming crises and people don’t lose their homes.
Of course, this will only be a temporary solution. A more permanent solution is to regulate the mortgage market so that sub-prime loans can not happen.
Yes.
It’s been pretty depressing listening to NPR during my morning commute: every story is about the sub-prime crisis, and it kind of makes me sick and angry. There are waaaay too many “for sale” signs. It’s eery.