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Wall Street doesn’t like to lose money. A few financial institutions have landed on the wrong side of the housing slowdown. Most major banks still made money last year, but their profit margins are falling fast.
They made the wrong financial bets and are now looking to Washington for a bailout. Sen. Chris Dodd (D-CT), Chair of the powerful Senate Banking Committee has proposed setting up a federal fund to buy mortgages for individuals in trouble. Yep, the federal government is going into the real estate business.
Never mind that almost 99% of mortgages are current and in no danger of foreclosure. Never mind that, based on historical records, only around half of the 1.7% of mortgages that are in foreclosure will result in the loss of a home. Oh, and never mind that some of these troubles mortgages were taken out by speculators hoping to “flip” properties in a market they thought would also go up.
They made bad decisions. Some of these are even tragic. But, bad decisions aren’t an occasion to get out the federal checkbook.
Help us send a clear message: No government bail-out! Sign our petition to stop the bail-out!
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