Letter to the Editor, NYT on Corporate Bailouts (Bear Stearns, Freddie Mac, Fannie Mae and Lehman looming along with the auto industry):
".... A profiteer's dream. We've privatized profits and socialized losses." Candida Pugh, California.
Rather a brilliant statement, I thought. The mortgage industry gave away money to anyone with a pulse - remember those Ditech ads on TV 24/7? Suddenly every house was a private ATM machine for cars, vacations, autism treatments? And then the market did what markets do, it changed course. What a mess. Of course, the people who made foolish errors are suffering. Maybe that speed boat or new car or second home wasn't necessary. Caveat emptor and all.
But what about the people who refinanced just to get by? Or who didn't understand the fine print that was smaller than an amoeba on that piece of paper held by the nice young man with the broad smile?
We sold our home three years ago. Just before the market in Cleveland (such as it was) collapsed. Thank goodness we got out.
So homeowners are falling like solidiers while the companies at the top are getting a bail out. I realize we can't let the market collapse - that's catastrophic for the country. But jeez, doesn't it seem that you and I pay for our sins the hard way and the companies and the people who ran them into the ground get off with half a Hail Mary and community service, in Palm Beach?