ironman, People can only take so much pressure in terms of financial unfairness. I agree that just stating something is unfair doesn’t mean it won’t happen.
Recent articles have stated that close to 9 percent of mortgages nationally were in trouble. That means that 91 percent of mortgages are not in trouble – at this (snapshot) point in time.
Assume taxpayers are mandated to pay for other people’s (the 9 percent) losses. I would expect more than just a grumble about it. I would expect revolt by some means.
If I’m a politician I would want to please the majority of voters – 91 percent would be my target audience for legislation pleasers. Simple math indicates that no bailouts – balanced on the backs of taxpayers – would be the type of legislation that I would want to pass. Homeowner bailout legislation would be too obvious.
(Having the majority support the minority reminds me of communism – and that didn’t work.)
So, if the politicians are trying to please the majority then it is surely not the majority of taxpayers. So it must be someone else – the banks and lenders. Follow the money.
