Crush Liberalism

comPost: Lenders make bad decisions, but borrowers don’t

The socialist tendencies of the Washington comPost become a bit too much to bear sometimes. Check this gem out:

The U.S. economy is going to take a hit, though no one can say when or how big. Government’s challenge is to limit the damage — especially to low- and moderate-income borrowers — without protecting lenders and investors from the consequences of their own bad business decisions.

I can’t call this “media bias”, because it is an editorial instead of a news story. However, it is still appallingly ignorant.

“Government’s challenge is to limit the damage” of subprime mortgage lending? Spoken like the Marxists that they are! The federal government has no constitutional role whatsoever in monkeying with the economic mechanisms like the mortgage market. But that’s not the galling part.

Read this part again: “Government’s challenge is to limit the damage — especially to low- and moderate-income borrowers — without protecting lenders and investors from the consequences of their own bad business decisions.” In other words, when borrowers make bad decisions (and don’t honor their agreement to repay) that land them in financial peril, they need the government’s help; however, those evil, greedy, capitalist businesses that lend the money to the borrowers made bad decisions, too, and by God (insert deity du jour here), they should have to suffer for their bad decisions!

Let’s not expect the borrowers to live with the consequences of their choices, but we should definitely expect the lenders to suffer the consequences of their choices. As usual, the left eschews personal responsibility.

By the way, just for the record, I oppose a federal bailout of any sort. Neither the borrowers nor the lenders should be entitled to taxpayer funds to help them with a contractual agreement to which both parties agreed.

September 5, 2007 - Posted by crushliberalism | economic ignorance, socialism