Keeping people in their homes is a paramount responsibility of the Federal government because the alternatives will cost significantly more and the most disadvantaged are suffering thanks to the mismanagement of corporate high-fliers. Indeed it should be the CEO’s and executives of the sub-prime lenders loosing their multi-million dollar mansions because of their greed and incompetence. With the extra revenue raised by selling these ill-gotten assets at least something is done to assuage the injustice of destroying peoples hopes and dreams.
Owning a home is already out of reach for many. The solution should never have entertained providing high finance to people that can ill afford servicing their loans. The lenders had one goal in mind, which was to maximise profits, rake in their handsome performance bonuses and if the happy family failed to pay, foreclosure would cover the debt and inflation pad out the profit even more. Great idea, totally unscrupulous and the entire scheme collapsed as fast as a pyramid investment scheme.
On the other side of this insidious scam are the poor families who perhaps unwisely overextended but at least did their best to work for their own piece of paradise. The foreclosure of one’s home would be a grief second only to the death of a loved one and the world is a cruel place without refuge. By not supporting those most affected by market pressures, rising interest rates and foreclosure the government is taking on the additional burden of the newest poor. Nobody deserves being cut out of life in this manner; with the exception of a minority most are hard working honest people that deserve better.
Taxes are for the people, not for the government to use for their own perks and privileges. Workers paying tax contribute to nation building however they are not likely to be too productive without having something to work towards, to protect and nurture therefore it is in the interests of democratic society to provide a fair go and give the needy a hand up.