The People have spoken. They have picked the Market over the Government to be the chooser of winners and losers.
Here are the Market’s choices for winners:
1. Those that live in their homes, versus those that purchased houses to be flipped (third letter).
2. Homeowners that purchased a house that they could afford with a 30-year fixed, versus the over-extended with an adjustable rate.
3. Small local banks that didn’t make ARM loans with no money down, versus big ones with mortgage-backed securities.
4. Those that saved their money, versus those betting on the stock market.
5. Those who pay for their cars with cash, versus those who finance them.
6. Those who pay for their expenses with cash, versus those who run up credit card debt.
7. Those who save money for their kids’ college funds, versus those who rely on loans.
8. Those who chose preferred stock, versus owners of common stock.
9. Those industries that are needed by and contribute to today’s economy, versus those that rely on subsidies voted for them by politicians.
10. In the global market—the Market will choose economies that have less debt and low inflation, versus big spending governments with easy monetary policy.
In general, the Market will choose the prudent. Who would have the Government picked as winners? The Market’s choices for losers. The Bailout would have picked all of the losers above.
Risk is not immoral: everyone should be able to invest as they choose, but they do so at their own risk.
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I think you are taking this “free market” ideology a little too far.
Some people simply can not afford to send their children to college without taking out a loan. After all almost everyone says student loan debt is a good thing right?
Factor in that collges across this land are ripping off every student with their outrageous cost increases, outpacing any measure of inflation without wages keeping up. Same with a car. For many no car means no work…
Can you show me someone who is making $8 an hour with a kid to feed and take care of can make it by by saving and paying cash for a car, paying cash for college, etc.
All loans are not bad, you make is seem like anyone taking out a loan is a bad person.
Further to that, it has been drilled into our heads by the same finance folks who have ruined the economy that saving and investing are the way to go, only to now see that “investment” disappear into thin air…..if you had your money only in cash, and were paid an interest rate of 2% the last time I checked that is as good as lighting your money on fire because of inflation. So what are you to do?
I'm am all for not baiout, but please your post is truy idiotic, show me that you understand this issue is more complex that what you write, otherwise don't write anything at all, it's garbage.