Wednesday, March 26, 2008

Stupidity in the Era of Entitlement

So, the stupidest protest just went on in NYC. Yes, the idiots who had the nerve to protest in the lobby of Bear Stearns over the Fed's "bail out" of the bank, while nothing was done for the "poor homeowners" who are facing foreclosure. Here's a link to a news story:;_ylt=Ah66wLgx5yI..HTCdft6qcys0NUE

Now, explain to me how these two things are related??

The fed is offering a heavily collateralized loan to help a major bank from going into bankruptcy. This is a bank that was taken down by rumors and a run. The Fed's guarantee is not helping the employees of Bear (trust me, I know, Dh works for Bear). All the guarantee did was make it more likely that JPMorgan Chase would take over and help the investors (many of whom are taxpayers, and fund holders) retain their money-making investments. Because when a bank goes down, all of the money held by the bank goes WITH IT. Bear had approximately $85 a share in assets before the liquidity problem (caused by rumors and media) happened. JPMorgan is going to go down in history as getting a steal of a deal, even at $10 a share. Watch.

Meanwhile, the Mortgage crisis is, I'm sorry, mostly the doing of the mortgage holders. Who takes on a mortgage they can't afford?? Ok, they could afford it in the beginning, but READ THE FINE PRINT. How hard is that, really?? We're talking mainly about people unable to pay for their mortgages who still have the same family incomes they had when they bought the homes. Yes,t here are pockets where people lost their jobs, but that is always going to happen. This crisis is people who didn't bother to actually READ their mortgage contracts, then went crying to the government when they started having problems paying their debts. I have very little sympathy for the people who took on more house than they could afford. I don't see why I, as a responsible taxpayer, should help out these people who weren't so responsible. Does that make me cold? Probably. But since when should our housing be socialist? Where is the line for fiscal responsibility?

I still love that it's the lender's faults that people can't pay anymore. I agree many people got preyed on, but it was their gullibility and greed that got preyed upon, really. Debt is not a good thing. Why take on more than you an handle??

So, in my opinion:

Bear Protesters = Morons.

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