I personally would rather bail-out the FBs than bail-out the executives who made the bad decisions, and the shareholders who made the bad decisions to buy into companies run by bad executives.
We need to bail out the financial system to protect the American way of life. But shareholders and executives need to pay the financial price for their bad decisions. It’s moral hazard, stupid! (just the expression, don’t mean to say you’re stupid).
I don’t see a problem with Warren Buffett buying companies for pennies on the dollar or nationalizing Fannie Mae as the shareholders get wiped-out. That’s how Capitalism is supposed to work.
The FB homebuyers are at the bottom of the totem pole. Besides, if we don’t find a way to let the consumers consume again, then who will drive the economy?
Don’t worry, the FBs who opt for the bail-out programs to remain in their homes, will be paying for it for the next 30 years. It’s poetic justice.
