It is not even an election year, and Im SICK of the rhetoric and debates. Suggesting a government bail out of the people facing foreclosure is an irrational response. It sounds like more schmooze to ensure votes and campaign contributions. A government bail out is more transparent than the mortgage problem and fiscally irresponsible.
Many of the borrowers had zero equity because they made no down payments. A bail out for the foreclosed borrower actually translates to bailing out mortgage insurance companies, lenders, underwriting companies, bonds and securities rating companies, investment companies, and investors.
Where was government supervision and consumer protection when unsuitable mortgage products were offered to unqualified borrowers? Where were the Federal Reserve Bank, Office of the Comptroller of the Currency, and Securities and Exchange Commission (to name a few)?