Bailing Out The Sub-Primes

I personally objected to the government approved Bear Sterns bailout some weeks back; it just seemed like a slap in the face to the average American tax payer as our government once again put the interests of corporate America first ostensibly to "steady" our economy, although it's widely accepted wisdom in all financial circles that the deal will end up costing us millions anyway.

And now we're hearing people say that we need another government-financed bailout for the millions of people who signed adjustable rate mortgages that they knew they couldn't afford. If this bailout does happen and depending on how it is instituted, I might start to feel like I'm being punished for not being irresponsible and deciding to rent an affordable condo instead. I knew the extent of my finances at the time and I chose not to gamble on a market that everyone was going all-in on; shouldn't that kind of prudence be rewarded in some relative manner?

I do have sympathy for those who were legitamately duped into committing to more than they could handle or were even just a little too excited at the prospect of becoming a home owner (my California friends are feeling it a bit more acutely than those folks I know back in Texas) but rather than just throwing more money at the predicament, I feel like this situation makes a legitimate argument for more government regulation of business lenders (the banking industry is at fault here as well) while at the same time, more personal responsibility on the part of the American people. Government safety nets should be reserved for giving people a leg up, not for correcting their every mistake.

This video makes the same case simply and powerfully: