News that the government is stepping in to help mortgage giants Fannie Mae and Freddy Mac is disturbing at best.
Last week, Treasury Secretary Henry Paulson assured these companies that basically: tax dollars will be used to bail them out if necessary. Now I understand the argument that these companies are facing rising delinquencies, I understand these companies own or back half of the nation's mortgages, and I understand the argument that they are too big to fail.
Some are saying without government help, the housing crisis will only get worse. But consider this, why should hard working taxpayers, who take care of their business, be forced to invest in a company that doesn't?
The fact is that these companies have loaned money to people that can't pay and the debt Fannie and Freddie are carrying is too high. So this self-inflicted damage now becomes the burden of you and me.
What I'd like to see is less dependency on government and more on rewarding the risk of private business. If they're going to reward failing companies, why not give bonuses to successful ones? Both arguments sound equally absurd.
Fortunately Lubbock isn't seeing the problems plaguing Fannie and Freddie. Maybe it's because people here understand what it means to live within their means. Unfortunately it appears we'll all be paying for the mistakes of others.
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