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Two things which used to be taught to each child by their parents at a young age were;

1) YOU are responsible for every one of your actions. And each decision/action will have a consequence that YOU will have to deal with.
2) Do NOT spend money that you do not have. If you want it but cannot afford it, SAVE for it.

Unfortunately these lessons have gone by the wayside in our current society. Look at our government "leaders" for confirmation. This will probably become congress spending our tax dollars to reward stupidity and ill-informed decision making, but it should not.

The majority of the mortgage companies that made these loans had teams of very smart (and greedy) people going over masses of data and figured they could get a lot of money by making these "too good to be true" loans and they figured the risk was acceptable for their companies. Now the market forces have changed and they housing industry which had been having the same type of bubble as the high-tech industry in the late 90's has burst and reality came crashing back in. A couple making $40,000 per year CANNOT actually afford a $750,000 home with astronomical monthly payments.

Today not even ten years after the tech bubble burst the tech industry is as strong as it ever was, but gauges everything with an eye toward reality and not the feverish zeal of a gambler on a roll. The industry has become STRONGER for the trouble in it's past. And has helped the economy also. If it had gone "high" enough and then crashed we could have faced another depression like the one in 1929. Luckily we did not have to go there. The housing market is the same way. The builders need to be more cautious and not build 300 million dollar homes each on speculation alone. Customers need to inject logic into their desires to own these fantastic homes. Save till you can afford. Then buy.

If Congress does bail out these companies and peoples it will weaken our society by rewarding what can only be called stupid behavior and not allowing the principles that founded our country and ideals to flourish. As a society we should demand that hard work and honesty be rewarded, not greed and fraud. We should let the market forces handle this naturally, and we will be a stronger culture because of it.

Learn more about this author, Jeg Brown.
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