No, ya think?
I am reminded of Ben Bernanke’s lame-ass defense of the Federal mortgage bailout plan… the plan by which people bought houses they could afford with loans they wouldn’t pay back. (Or, took out second mortgages they couldn’t afford based on their ridiculously overvalued homes.) Bernanke compared this to a neighbor whose house caught fire because he was smoking in bed.
“You could punish him by refusing to send the fire dept and then he would learn his lesson, but unfortunately in the process you’d have the entire neighborhood burning down.”
Economic Disconnect points out why this metaphor is stupid. “My neighbor’s house is NOT on fire Mr. Bernanke– it’s just overvalued. … When his house goes into foreclosure, he moves into housing he can afford, and I can buy the house I’ve been waiting for. It sounds like a good plan to me, and you want to mess it up for both of us.”
The angle CBS is missing is that people are getting alarmed about the aggregate cost of all these bailouts. If the government hadn’t just spent $780 Billion on a useless stimulus, and $700 Billion on a Wall Street Bailout… Maybe people would be more receptive to the plan to spend $275 Billion bailing out bad mortgages. Charity has its limits. There’s no Biblical injunction to cripple yourself in order to bailout those who won’t take responsibility for their own bad choices.
Hat Tip: Alex The Chick