[ABC News photo shamelessly lifted from the 23,500 hits in a Google Image search for "mortgage bailout."]
It should be noted that when subprime mortgage homeowners started failing to keep up with mortgage payments there was nary a peep. Now that banks are finding themselves with all this devalued real estate on their hands, it's time for a bailout. Face it. We're bailing out banks and mortgage investors as well as subprine mortgage homeowners.
Generation Risk pointed me to Brad Delong's explanation in March 2007.
There's an interesting conclusion at The Street in a December article.
In the 19th century, Americans were shocked to learn that the West, the "frontier," no longer existed. It was a major cultural and economic turning point for our country. And now, in the 21st century, Americans are receiving a similar shock -- a recognition that our resources are not unlimited, and that we'll be forced to make tough choices about how we allocate the resources we have. That's the Savage Truth. (emphasis added)I have much more to say about this. But I have to go to work.