Originally Posted by InBBA
I for one think that people should not live beyond their means.
It's hard to disagree with that regardless of what the government does to help out homeowners or banks.
On the topic of helping homeowners, I have real mixed feelings. I think that there should be some sort of repercussions for those who took out mortgages that they knew they wouldn't be able to maintain (or in some cases had no intentions of ever paying back), or were smart enough to know better than taking out some mortgage that was interest only or some huge exploding APR, etc... but took them out anyway and that these folks should not get help from the government.
But one thing that a lot of people forget to consider is that these borrowers are neighbors of homeowners who have been paying their mortgages faithfully for many years or who own their homes outright, etc and these good folks are going to be hurt (through no real fault of their own) from the consequences of having foreclosed homes in their neighborhoods that could just likely sit there empty for months and months.
As for the banks, I think this is the kick in the pants that they need to pay more attention to what sort of securities they choose to invest their (and ultimately our) funds in but if the government steps in with a huge bailout for the banking industry there will be a diminished incentive for the banks to do the right thing the next time around.