NLIC.org

Jorge Said:

With this recent mortgage bail out of lenders, are we rewarding bad behavior?

We Answered:

Basically; yes. As a country; we ALWAYS reward bad/stupid behavior. Every day people do foolish things with their money, run up creditcard debt and claim "bankruptcy" because they failed to live within their means and the only difference is that this round they ran up creditcard dent, paid it off by refinancing their house, and doing it again, and again, and again until the next" greater fool" failed to showup and bail them out of their overpriced house that has no equity because of all the refis they did on it.
And by the way; we do NOT have an option. Either we "bail out the lenders" or we force lending standards to continue to tighten, keep everybody normal from having money to spend, and the economy goes into recession.
Your choice; do you want to repeat the "Roaring 20's" with the great stock market rally, followed by Black Monday, the stock market crash, and the worst recession in our history OR do you want to "bail out lenders"?

Greg Said:

doesn't everyone enjoy the fact that we have a central bank that thinks they can bail all bad mortgage lenders

We Answered:

Its not our tax money, they simply increase the money supply or print additional monies, thus devaluing every dollar you and I have. You could call it a tax, if you want to, but I would refer to it as an inflationary tax not an income tax. Quit whining or move, there's not one thing you're gonna do to change it, EVER.

Hazel Said:

If the government can bail out bad lenders and mortgage brokers, then why...?

We Answered:

The government should not bail out either the borrower or the lender.
If they do what does that say to those of us that are more responsible with our spending habits. And what does it say to lenders that payed closer attention to who and how much they did lend.