Comments on: Why Government Bailouts Could Cost You Millions http://www.youngmoney.com/credit_debt/credit_basics/Gov_bailouts/ Money: Earn it, Invest it, Spend it Fri, 16 Mar 2012 19:14:29 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carly http://www.youngmoney.com/credit_debt/credit_basics/Gov_bailouts/comment-page-1/#comment-370 Carly Tue, 23 Sep 2008 23:45:51 +0000 http://75.145.89.9/?page_id=1265#comment-370 I would say that I am shocked that this is happening, but I am not. As much as credit is used and abused the past years and the thought that anyone can get anything they want with this false security(credit and loans), has greatly affected our economy to the point of breakdown. I am now a sophmore in college and I fear this bailout will crush my dreams entirely of becoming a physician. As bill mentioned, " This bailout will effect those who do the responsible thing." I have always been careful with using credit and I have always been on time. Yet I know in the back of my mind I will have to pay for what irresposible people have done. I wish I could look at any of this in a positive manner, but I see a great depression on the horizon. I hope we as a nation can get ourselves out of this. I would say that I am shocked that this is happening, but I am not. As much as credit is used and abused the past years and the thought that anyone can get anything they want with this false security(credit and loans), has greatly affected our economy to the point of breakdown. I am now a sophmore in college and I fear this bailout will crush my dreams entirely of becoming a physician. As bill mentioned, ” This bailout will effect those who do the responsible thing.” I have always been careful with using credit and I have always been on time. Yet I know in the back of my mind I will have to pay for what irresposible people have done. I wish I could look at any of this in a positive manner, but I see a great depression on the horizon. I hope we as a nation can get ourselves out of this.

]]> By: rupert http://www.youngmoney.com/credit_debt/credit_basics/Gov_bailouts/comment-page-1/#comment-365 rupert Tue, 23 Sep 2008 10:17:32 +0000 http://75.145.89.9/?page_id=1265#comment-365 Bill is right, of course. To expand: think of what will happen "next time." What is going to stop this from happening again? A lot of people say, "Regulation." This is so contradictory to everything the government does. Who is going to comply to regulation when we are giving them incentives to take risks when it comes to mortgage? Imagine you are a mortgage lender. You can make a huge profit off subprime lending. The only thing holding you back is the risk of delinquency or bankruptcy. However, you remember back in 2008 when the government bailed out everyone that failed horribly. Your obvious choice, shoot for the profit, let the government carry the burden of the risk. We can regulate all we want, but nothing we do will make a difference until we commit to the philosophy that no business is "too big to fail." Bill is right, of course. To expand: think of what will happen “next time.” What is going to stop this from happening again?

A lot of people say, “Regulation.” This is so contradictory to everything the government does. Who is going to comply to regulation when we are giving them incentives to take risks when it comes to mortgage?

Imagine you are a mortgage lender. You can make a huge profit off subprime lending. The only thing holding you back is the risk of delinquency or bankruptcy. However, you remember back in 2008 when the government bailed out everyone that failed horribly. Your obvious choice, shoot for the profit, let the government carry the burden of the risk.

We can regulate all we want, but nothing we do will make a difference until we commit to the philosophy that no business is “too big to fail.”

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