Under capitalism, the free market has to be allowed to work. People and businesses have to be allowed to fail. Mother Government can’t come in and save the day by using taxpayer money to bail out people and businesses just because it hurts to see this failure. When businesses fail, a hole in the market is left behind. That hole will eventually be filled by some other business who is likely performing the same function and very well might even employ many of the same people who worked at the failed business.

I believe the same thing applies to failed mortgages. I hate that people are losing their homes, but that isn’t my fault and it isn’t your fault. We shouldn’t have to pay for the mortgages that couldn’t be covered by those who owned them.  Personal responsibility needs to be the theme of these times.  If there are consequences people must face as a result of their irresponsibility or ignorance, then they must be allowed to face them.

What will happen? Well, the market might struggle quite a bit (though, now it looks like that was going to happen with or without a bailout). Housing prices and values may drop significantly. But here’s the thing. They will likely drop to a rate to where average people can start buying homes again.

That, in my opinion, is where a lot of this got out of hand. Everything has been overinflated for so long that it has just been accepted that this how things are supposed to be. The market is down to below 9,000 for the first time in 4 or 5 years, and people are freaking out. What does this mean for the average person? Investments may be struggling a bit and that can hurt, but, otherwise, not a whole lot. Life will go on. And maybe with corrections in the market, life will become more affordable again.

But that likely won’t even be given a chance to work … at least not under the leadership of either of the two main presidential candidates.  They do not seem interested in allowing the free market to do its thing.

Even if this mortgage buyout WAS a good idea in theory, the federal government is one of the worst managed “businesses” in history. Do you really trust them to not bungle up a mortgage buyout? I guarantee that once all of those mortgages are bought up, we’ll just see some other huge mess as a result of it that will cost billions and billions more. Things NEVER run as smoothly as the government tells us they will.

As radio talk show host Phil Valentine always says, “The government should only do what the private sector cannot, will not, or should not do.” The federal government should protect us from foreign enemies and domestic violence. The government should not try to control the economy—at least not on the micromanagement level of owning and controlling businesses. The economy’s ups and downs should be a result of the free market being allowed to work.

But that’s just my opinion.

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