Quote Originally Posted by complich8
It's not just the stupid borrowers. It's also the predatory lenders, outright lies and misinformation presented by loan agents to convince stupid borrowers to borrow more than they could ever pay back, and the horrible mis-rating of these subprime-backed securities that are failing to perform.

I'd rather see an effort to resolve the backing of those bad securities (ie: by turning high-rate subprime mortgages into low fixed-rate mortgages where people can actually pay back their debts) than to see the government pin a bunch of inflation on the entire public to reward the malfeasance of a bunch of bankers.
The lenders are at fault but not so much as the stupid borrowers. People should know their limits, but they always try to live above their means. If you make $3k/mo, no amount of smooth-talk from a lender should convince you that you can afford a $2k/mo mortgage.

I also agree that the lenders should be punished for their part in this mess, while making it possible for borrowers to keep their homes and their credit records by giving them a way to pay their debts. I did not mean to suggest I support the Bush bail out plan, which is typical hind-sighted policy-making of his presidency.