The one thing that George Bush said in this article that made me breath a sign of relief was this:
One thing the president promised not do was a direct bailout of homeowners facing foreclosures or of lenders with financial problems traced to portfolios of defaulting subprime loans.
Such bailouts, he said, "would only aggravate the problem."
Exactly. It's the whole "you made your bed, now lie in it". If you over extended yourself, sell your house and move into a smaller one or an apartment. No one gets a government bailout for being fiscally irresponsible.
The same goes for Wall Street investors:
Also not prime candidates for government bailouts, in Baker's view, are Wall Street investors who the Bush proposals could help by giving defaulting borrowers an out through FHA refinancing.
Said Baker, "There should be zero interest in helping out Wall Street. You don't want money from taxpayers to go to people who made risky investments."
Exactly. They made risky investments and those investments tanked. Welcome to the wonderful world of Wall Street. No one should get bailed out of their mortgage or their investments in a risky things like companies who loaned $400,000 to someone who works at McDonalds.
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