Implicit in buying up the bad loans from banks is that the borrowers skate. It’s impossible to think that the entity buying the loans will then foreclose, they’ll just do workouts. If anything at all. It’s possible the loans will just sit in a dormant portfolio locked away in a Washington hole somewhere.
What about the borrowers? This entire “subprime loan crisis” has ignored the fact that many people took out loans who surely knew they could not afford them. Come on, can we believe that masses of people were totally duped by unscrupulous lended goaded on by an unscrupulous congressional policy? Certainly, some fall into that category. But do we treat that entire population as a victim and ignore their own responsibility?
Personal responsibility has to surface again in this country, somewhere, sometime, somehow. If we continue on the path we’re on, it’s the “handout path to to societal armageddon.” Yeah, I just made up that phrase. It’s NOT the “economy stupid.” It’s the wrecking of all of our traditional (and previously highly successful) values in American society that the victimology/entitlement approach of government is causing.
And letting subprime borrowers, as an entire class, skate is another example.