Mortgage Bailouts? Country Bailouts? Will They Work?

Author: Leo the Spartan
Published: June 20, 2012 at 6:37 am
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As we begin the third consecutive summer with financial turmoil in Greece as well as many other European Nations, it begs the question, how many bailouts are enough, and will any of these actually arrive at a satisfactory conclusion? As one occupying a desk in the Mortgage Industry for many years (and of course being on hand to witness innumerable "Bailouts" designed to protect homeowners) I must admit that the people who have devised these programs know nothing of my industry and its intricacies. If they had, perhaps one of the many might have been viable, but in the end all I smell is ineptitude squared.

As I have stated before, they certainly could and should have called me for advice - but then that would have made sense, and we all know that would not blend well with politics. It's becoming apparent that the politicians' sole goal is not to cure a problem but to sustain it, hence the need for their great wisdom. If you have detected my obvious sarcasm, you no doubt can hear my laughter as well.

In all seriousness, indeed these problems are to be treated as such, and do require viable solutions - as opposed to band aids which are prominently being used as we speak. After all, I can use a bailout myself as most of us could. But is it really a solution? I can assure you, it makes no economic sense. Yes it might help me today, but at what cost for tomorrow, and who pays the price? That is the key question. No leader seems to want to address that issue, aside from vague notions of "the rich". France is already finding out where that leads. Under the new Socialist Regime, the rich in cheese land are moving across the channel. Didn't see that coming, did you Socialists? They never do. Witness New Jersey and California, and the exodus occurring from their own taxation. So no friends, it is not a solution.

The only true and workable solution is to allow the market to clear the excess, but instead we have thrown some $12 trillion at the problem and we still have the problem. Fascinating, no?

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Article Author: Leo the Spartan

300 spartans + 1 which is written by Leo the Spartan for the independant minded and fair observer to cultivate and to promote thoughtful debate. You may also stop by the home of 300 Spartans + 1 @ leovou.wordpress.com if you like. …

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