From Thomas Sowell today, concerning those who seek to be bailed out from bad mortgage debt:
"The federal government has decided to bail out homeowners in trouble with mortgage loans up to $729,000. That raises some questions that ought to be asked, but are seldom being asked. Since the average American never took out a mortgage loan as big as 700 grand — for the very good reason that he could not afford it — why should he be forced as a taxpayer to subsidize someone else who apparently couldn’t afford it either, but who got in over his head anyway? Why should taxpayers who live in apartments, perhaps because they did not feel that they could afford to buy a house, be forced to subsidize people who could not afford to buy a house, but who went ahead and bought one anyway?"
Blind "compassion" is not necessarily good economics, nor is it good economic policy.
