Both – the people who got taken deserve some help in finding ways to stay in their homes, but if the banks fail we all lose. I get torn about this because the lack of personal responsibility in this country is infuriating, but I do believe that some of what happened was fraud and trickery.

If they don’t bail them out now they’ll likely pay for it in social services they receive down the road, which is usually more costly.

is it possible to ‘bail out’ the actors here in a way that does not reward carelessness, greed, or recklessness? while i am sure there are many homeowners that were these things, moreso, do i believe more of the blame is on the side of the lenders–it’s not a level playing field. this is THEIR BUSINESS, and no one put a gun to their head to make half-cocked loans to people they knew would not likely be able to pay them back. instead, many of these institutions were driven by one thing: greed. again, is there a way to bail out the real victims here and not the predators?

i think the prevalence of interest only loans and that banks seemed ready to give loans to just about anyone is part of what drove up housing prices so quickly in DC. Suddenly the monthly payment on a $500K house only cost what a 30yr fixed loan on a $350K house would have cost. And banks, real estate agents, and city govts (through property taxes) all made massive amounts of money from increasing housing prices. Of course many homeowners made a lot of money selling properties that doubled in price in only a few years and the pressure to get in the housing market was really quick. I agree w/ Chris though that the bulk of the responsibility has to be with the lenders…

There are people who got taken because they didn’t care to understand the details of their mortgages, and there are people who were victims of predatory lending. The first group doesn’t deserve a bail-out. The second has a legal remedy and shouldn’t need a bail-out. Of course, people who are victims of predatory lending are unlikely to have good lawyers on stand-by… As for the banks, I agree with the Feds: ask Bear Stearns investors if 7 cents on the dollar feels like a bail-out. The Feds may be buying up and/or guaranteeing some banks’ crappy sub-prime investments, but at fire-sale prices. Seems to me that the banks are to a large degree suffering the effects their poor decision-making.

The government shouldn’t bail anyone out. As any responsible taxpayer, I don’t want my taxes to help pay for people who made irresponsible financial decisions, and didn’t take the time to review.. That was their problem. It’s the issue of the banks.

This whole situation makes me fume. Another issue for me is that Obama stands behind the Bail-outs, and that’s one of the reasons why I am not voting for him!!! Why can’t people understand that that is not good.

It’s essentially giving people slaps on the wrists, if you really think about it.

When were ARMs invented? They shoulda never.

This whole crisis is caused by greed and nothing more. When I bought my place, I was a mere 24 years old, but I knew that anything “adjustable” is subject to market fluctuations and is a gamble that no intelligent person would take. I knew, historically, that things go up and down all the time and that it’s better to stay conservative (financially) and not take risks with something like a mortgage payment. I thought it was just common knowledge, but apparently I was wrong. Several people in my condo building took the gamble; not only did they get adjustable rate mortgages, but they also borrowed the maximum amount allowed so that they could buy a huge place that was way more than they could afford. Guess what? Several have gone into foreclosure, gotten in trouble with their condo fees, or both. That all being said, I do not think that people should be bailed out, especially when they simply spent beyond their means. It sends a message that “the government” is going to bail people out when they get in financial trouble. People will go back to their old spending habits. People need to learn that living beyond their means is irresponsible and plain stupid.

we should be held responsible for the predictable consequences of our actions.

Is anyone going to bail out gamblers in vegas? of course not. This is stupid.

CAVEAT EMPTOR ! I feel nothing for people who are victims or “predatory lending”. All the information is there when you sign the paper.. if you are too lazy to read it, its your problem. Same for banks, which should know better, if you take on a huge risk, you might loose out.
If this hurts the economy then perhaps the economy needs a hit to get straightened out. The worst part of a bailout is that people who are responsible and think reasonably before they act are still going to end up paying for other’s recklesness.

It almost makes you want to be reckless because there will always be poeple who bail you out (who probably learned the hardway not to be reckless)