Monday, October 08, 2007

Subprime and the Role of Government

"The government that governs best is the government that governs least" appears to have become the singular dictum of the current administration. Even the war in Iraq has become the most privatized war in history. Many have even argued that the Federal Government's response or lack of response to hurricane Katrina was in essence a reflection of this ideological shift that questions the role that the Federal government is supposed to play in promoting the welfare of the nation.
So here we are again facing a new Katrina disaster, the subprime debacle where millions of families have to graple with foreclosures on their homes. The new Katrina is promising to be much more overwhelming than the old one. Actually the current debacle carries within it the seeds of a national recession not to mention the real human sufferings and stress that will ensue. Yet the government has failed to come up with a comprehensive plan to help avert the impending torrent of foreclosures on the grounds that government assisstance should not replace personal responsibility. It was more than acceptable. however, for the government to bail out the hedge funds and Wall Street from their misguided investment decisions. And I always thought that government is supposed to protect the weak and the poor.

2 comments:

Reyna said...

Good for people to know.

Anonymous said...

I disagree with this article i believe that our governmnet doesnt need to bail out people for their homes. The banks should have never gave them loans in the first place. So people who have been paying their mortgages dont get help and they manage.

Raymond Gregg