End Bailouts—No Ifs, Ands, or Buts

This article is arguing for no more bailouts in light of current issues with foreclosures and how they affect the banks that service the loans. The author goes on to blame major banks for taking to much risk and acting on the assumption that if all goes wrong the public sectors will have their backs. I do not think it is unreasonable for banks to assume this. Nobody in Washington was complaining when banks were providing sub-prime mortgages then selling the mortgages off the Fannie Mae, all in the name of increased home ownership. The government has a hand in this mess too, thus have no right to turn a blind eye to the banks that are being troubled by the foreclosures. the moral hazard was created by the government when they allowed and even promoted banks to give out risky loans. Also, at some point consumers have to be held accountable for these foreclosures as well. Just because a mortgage is being offered to you, does not mean you have to take it.