©Millionaire Mindset Secrets - flickr

©Millionaire Mindset Secrets – flickr

So far, both major candidates for the US presidency have offered to use government power to step in and solve the foreclosure crisis, despite the fact that every step that the politicians have taken so far has proved counterproductive. When did both candidates give up their belief in personal and corporate responsibility? But they are obviously just following trends, as no one in America believes in taking responsibility anymore. The government insurance fund will be there no matter how many bad decisions corporations make that impoverish the people.

Are you a homeowner that took out a mortgage you can no longer afford? Or were never able to afford in the first place and lied numerous times on your mortgage application? Just wait until the government steps in under the new bailout plan and buys your home from the bank. Then you can negotiate a lower balance and lower monthly payments with a bureaucrat who has been instructed to “stabilize the housing market.”

Are you a subrpime mortgage lender that made a bunch of loans that defaulted? Well, you have already gone out of business after busting out your company’s lines of credit by offering loans on overvalued property to people who did not understand the type of loan you were giving them. But if you still are in business, declare a “liquidity crisis” in your own company and sell out to a large financial firm that is in the business of securitizing your bad loans and pawning them off on pension funds in small towns in Australia.

Are you a Wall Street firm and no one is buying your toxic mortgage securities and find yourself stuck with a bunch of subprime lender divisions you bought a few years ago that has not funded a new loan in six months? It will be really easy for you! Just request that the government invests directly in your company, offers you guaranteed loans through the Federal Reserve inflation auction window, or gives you US Treasury securities in exchange for the mortgage securities that are no one else will buy because they have been defrauded by you one too many times by now.

After everything the government has ever done to bail out failing financial institutions and corporations, why would anyone in America believe in personal responsibility for paying their debts anymore? Everyone defaults, from families with five too many mortgages to hedge funds holding those mortgage securities. In any case, just make sure to cry enough in the media and the government will offer to step in and “help” (i.e., steal from other people and inflate the currency) to “address the crisis” and “stabilize the markets.”

Banks have rarely made a good financial decision since… well, probably before 1913 or so. And every investment they have made since at least the 1980s in emerging market sectors (regional S&Ls, Mexican pesos, SE Asian countries, Russian bonds, tech stocks, real estate loans) has gone bad, and the financial institutions have received a bailout in every case (Resolution Trust Corporation, Mexican bailout, emergency rate cuts and liquidity injections, Long Term Capital Management, erasure of lending regulations while federal insurance on deposits is maintained).

Personal responsibility? In America? Please. The best bet for homeowners facing foreclosure now may just be to get in line behind the other companies and individuals requesting a bailout.

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