Why should they bail people out of a mortgage that they let themselves get into. It is not their job. It is not in the Constitution that we have the right for the government to save our butt when we are too stupid to know that if it is too good to be true than it probably is.
18 years ago when I bought my first house I was young and did not have a lot of credit. It took about 2 months to get paper work through to get approved. I needed everything except for a note from my teacher from third grade saying I was a good student. Needless to say it was difficult. This was on a house that was 74000 dollars, and a payment of 640 dollars a month payment. I bought my next house 6 years later and it was no differrent. In the last 5 years lenders gave a home to whom ever had a pulse. They even gave in some cases two houses to these people. There were 25 year old couples with 400 and 500 thousand dollar houses. If they could not afford the payment then the lender's gave them zero percent interest, which the payment was still a couple of grand. After 3 to 5 years it would go to a varieable interest rate that had no limits. No one cared they just lived for today.
Where in the constitution does it say that if you make terrible financial decisions the government will get you out of it. This makes no sense. The only way to learn how not to make bad decisions is to have to pay for them. I guarantee you that if you have your house taken from you by foreclosure you won't let it happen again. This is how you learn. When you were a kid if you put your hand in fire and you were burnt you did not do it again. If you hit your thumb with a hammer trying to drive in a nail you were more careful the next time. Why, because you remember how much it hurt the first time and you know that it will hurt again.
If the government comes in and saves everybody's butt whether it is the buyer or the lender where does that put us? What lesson will be learned. The lender will know he can write loans for who ever he wants. The buyer is not going to worry about a financial disaster because they know that the government will be there to bail them out as well. Another thing if the government steps in is that it will not let the market go back down to where it should be to get people to buy houses again. If the government steps in what is going to keep it from happening again?
When we grew up most of us had parents that we could count on when we screwed up. Eventually we quit screwing up because we felt guilty about having to go to our parents for help. If society wants to regress to where the government is like our parents then we will definitly be passed up by all magor countries in this world in every aspect that counts.
In sports if you aren't good enough you worked hard to become better so that you would play. That is what pushed you. If you don't make enough money in your job you worked harder or went to school to get a job that paid you more. In life if you don't make enough money to buy a house then you buy a smaller house. If you can't buy a smaller house than you rent and work hard to save and make more money till you can afford a house. This is how I was raised and how I think it should work.
I coach on a team which is very competitive. Not every kid gets to play every game. The kids that work hard earn a starting position. The one's that don't want to work hard to earn a spot go to their parents to get them to talk to me. When they come to me I tell the parents that their kids need to work harder in practice and at home if they want to earn a spot. If they do not want to do that then they won't be playing. Of course they leave and are upset with me because they do not understand. The majority of the parents get it, but a few of them don't.
Just like society isn't it? Most of us get it but the one's that don't want someone else to fix it for them.