On Dec 13, 2007 11:53 AM, Doug Henwood <[EMAIL PROTECTED]> wrote: > On Dec 13, 2007, at 2:42 PM, Charles Brown wrote: > > > Who said let her rip ? As Raghu hinted, give the money to the poor > > instead of the rich. > > Uh, then they'd just have to turn it over to the bankers to service > the mortgages. If people at risk of foreclosure just kept the money, > that wouldn't be fair to the suckers who are still paying their > mortgages, either.
This is of course the problem with any bailout - it is always unfair to *someone*. I like to think of it as a form of moral hazard. People went and speculated as if they had insurance against failure and no one corrected their mis-perception until the whole economy was put in danger. So now what? The Fed has no choice but to bail someone out. I just think it'd be much better on many different levels, if the beneficiaries are poor (sub-prime) people instead of Wall St. -raghu.
