First-time homebuyer classes are a joke and do not discuss the advantages and disadvantages of the various mortgage types. I have taken several to see what was actually discussed. They are dog and pony shows designed to accomodate the large number of attendees and to amuse them and massage their audience’s fervent desire to pursue the American Dream…nothing more.

None of this is to say that the first-time buyer is right for picking the high-risk mortgage or for not making good on the debt. It is however, clear evidence of the complicity of the state in promoting and profiting from what are to the states risky investment instruments.

I think, perish the thought, he believes folks should
be responsible for their own actions.

The ‘poor’ folks you mention, are, at least percentage wise, a small number. I empathize with them. They’ll go back to being renters, as that’s what they should have remained in the first place. I think you and I can agree on that.

Since they bought with no money down, and probably had their closing costs paid, they’ve got nothing to lose.

Bernanke believes what our grandparents taught us. That we should keep our noses clean, work hard, and try not to be so damn dumb that you can’t see something’s too good to be true.

Once and for all we all, Bernanke is gonna send folks who’ve brazenly violated not only economic physics, but plain common sense – to stand in the corner for a well deserved timeout.

Seriously Joshua, at what point to you draw the line? At what point do you tell the fat lady to stop whining and stop eating 7,000 calories a day? At what point do you finally say, “You made the decision, you reap the consequences – good, bad, or ugly?”

Businesses will do anything to make a buck. Government regulation exists to protect the people from these businesses and their practices. Why wouldn’t a poor person get a no-doc loan to buy a house if it is being offered to them? The problem is that unfortunately, many people are uneducated and the regulators never stepped in to protect them from the businesses out making a buck. If the rules for lenders were more strict in the first place, we wouldn’t be in this situation.

As for the government . . . they caused this problem. They need to fix it.

Bernanke isn’t to blame directly, but he is someone with the power to do something about it all.

“If Stevie told you to jump off the bridge, would you?”

If the investors are gonna now complain they were encouraged to defy what you and I know amount to economic physics, it’s not, in my opinion, Bernanke’s obligation to kiss the booboo and make it better.

The problem is, he’s treating folks like adults. He’s not leaving them on their own. They’ve been on their own since day one. The fact they all thought they could jump off the roof and fall up instead of down, isn’t Bennanke’s problem – OR his fault.