home insurance companies in the United States? Is it possible that this could lead to the government deciding who gets mortgages, loans, and home insurance? (well, the already do, but does it bother you that it is now a widely known thing)
In a small way, yes, I am not sure I want the government making all of those decisions. But, if this is what it takes right now to get our economy back on track-I am all for it.
edit: I have to agree with several of these answers. I have sat and wondered forever how the hell so many of these people got away with loaning money to risky clients. The ARM loan? Those two things alone are bad, but put them together and you have disaster for all involved.
Well, yes and no.
It bothers me that the managers and administration of these entities were allowed to run them into the ground and line their own pockets, and that it had to come to this before any level of governmental oversight came into play. It bothers me that the consequences will be to common stock holders who just lost almost everything they had invested in either Freddy Mac or Fanny Mae, and not to the idiots who actually made the bad business decisions that got them into the current pickle. It reassures me that the preferred stock owners will be protected a little, because many of those people are over seas, and the LAST thing the US needs right now is the image that our biggest financial institutions are unstable and not good investments for foreign cash infusions. Can ou imagine what will happen if the Chinese decide to pull their money OUT of the US? Yikes? Who do you think we owe those trillions of dollars TO?
I don’t object to regulations. Part of a government’s legitimate function is to facilitate commerce. It also isn’t the first time the government has bailed out someone in private industry.
I am not worried about the government trying to get too deep into my financial business. I don’t think they have nearly as much control as you imply.
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What I see is the government establishing another very dangerous precedent. If the stockholders, board of directors and other employees of a company are not doing they job well, they should pay the consequences, whatever those consequences are. Mortgage companies have been so eager to approve mortgages that they didn’t stop to actually investigate the income and credit standing of those people that now are in foreclosures. There’s no one over the face of this earth that will be able to tell me that ALL those people in foreclosures got into financial problems out of nowhere, they were earning $500. but wanting to live like they earn $1,000. I don’t see any reasonable explanation on why the tax payers have to pay the price for the financial irresponsibility of some "show-offs". We don’t buy what we cannot afford, it’s as simple as that!!
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In a small way, yes, I am not sure I want the government making all of those decisions. But, if this is what it takes right now to get our economy back on track-I am all for it.
edit: I have to agree with several of these answers. I have sat and wondered forever how the hell so many of these people got away with loaning money to risky clients. The ARM loan? Those two things alone are bad, but put them together and you have disaster for all involved.
References :