Reply #127: More perspective...

[TreasonousBastard]

Many of the people in trouble paid far too much for their houses, and perhaps knew that they couldn't afford them even with the trick mortgages. Should we go after those who sold their houses at obscene profits? Should we try to figure out who was buying second and third homes, or who was trying to flip houses after watching all those TV commercioals? Should we assist people who bought more house than they needed simply because they thought they were getting a "free" mortgage? Talking about homeowner problems is a strawman that gets people all worked up and avoids talking about the real problems.

The word "Bailout" brings up all sorts of negative images. But, how's about we talk about your boss not being able to get the sort-term loan to make the payroll? How about not being able to get a bridge loan to order materials for the new contract? Maybe your check to the cable company bounces because your bank is caught short of funds the day it tried to clear.

All these, and more, are the kinds of problems a liquidity crisis causes, and "bailing out" banks isn't giving them a free ride-- it's avoiding these problems.