The Greater Good - Is It Great and Is It Good?

The stimulus package and the second half of the TARP has generated no end of discussion of their pros and cons. Of interest to me and others who have managed to cut corners and still pay their mortgage payments despite eroding values, is the idea of rewarding risky and opportunistic behaviors.

The question often is, "Where is my share of the bailout when my property values have decreased, even though I am still making my payments as agreed?" If the bailout et al is going to help those who borrowed far more than they could afford, took "interest only" loans, or signed up for a ridiculously low payment on an ARM (adjustable rate mortgage), then where is the relief for responsible people?. It is clear that some people got greedy, or "bet on the come", or just didn't even think to look a few years into the future when the piper would have to be paid. So today, some of those irresponsible people want the government (read U.S. Taxpayers) to rescue them.

The same could be said of the bank bailout, some of which will surely go to banks that lent money recklessly to less-than-credit-worthy customers on less-than-reliable mortgages. Greed is the word. And foolishness, and of course, just plain stupidity.

So should those of us who have lost a large share of our retirement nest eggs, a good chunk of home values, and who knows what else, now have to bear the additional burden of "saving" those who did not plan, did not think, and maybe did not even care?

The problem, some economists and others will tell you, is that if we don't save the foolish home buyers, the greedy banks, and reckless investors, the economy will get worse and therefore harm us all even more. What a Hobson's choice that is!

For the record, I am in favor of helping those who, through no fault of their own, had their jobs evaporate, or their families suffer illnesses or death of the breadwinner. We must help those people as we always have. It just grinds on many of us to subsidize the excessive risk-takers, the grifters, and the opportunists who now want to amble up to the public trough and beg for "more please".

Yet, I know that we need to hope for a rising tide soon, that will lift all ships, and if this shot in the arm of government money will do the job, then I guess we have to hope for the best. I don't want to see foreclosures erode home values even more or for banks to tighten lending so that even I can't get a car loan without proving I don't need it. I worked hard to build my credit and now guard it as a "sacred trust". I just wish others would do the same, or if they choose not to, to only take themselves down, and not the rest of us with them. I guess that is my American Dream.