The bail out

 Last week President Bush signed a bill that would freeze sub prime mortgage rates for a number of years. This was meant to “bail out” the American Public. I feel weird about this. Here are some things to consider:
  • Did the American people know what a sub prime loan was? Did they understand what they were buying?
  • Were they misled by aggressive mortgage brokers and builders?
  • Will these people learn a lesson if they are bailed out?
  • Will this bill give these people the chance they need at financial redemption?
  • What about the financial institutions that issued these loans? They are forced to lose money.
  • There is no financial education program linked to this bill.

Although I want Americans to get some help with this terrible issue, I can’t help think that this seems like parents sticking up for their kids when they shouldn’t. As you know, Mrs. Planner is a high school teacher. She often gets calls or emails from parents asking her to change their child’s grades. The kid earns a “C” on a test, but the parent wants to negotiate the “C” into a “B” because “the kid was tired from a late night swim meet.” Tough lessons are though to learn, but that is why they are called tough lessons.

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