How to Handle the Mortgage Mess? Do the Right Thing.

| October 9, 2008 | 9 Replies

The more I think about the mortgage crisis and the outright socialist solutions coming from both Democrats and Republicans, the more I think of this question asked in Tuesday night’s debate:

Since World War II, we have never been asked to sacrifice anything to help our country, except the blood of our heroic men and women. As president, what sacrifices — sacrifices will you ask every American to make to help restore the American dream and to get out of the economic morass that we’re now in?

Since neither candidate answered the question, I’ll do it. We can make one very simple sacrifice that will let us get through this as we’ve gotten through every other tough economic time in our contry’s history.

That sacrifice, which really isn’t a sacrifice at all, is summed up in one sentence: Do the right thing.

No government bailout. No socialized mortgage buy-up. No nothing. Do the right thing.

Has the value of your house fallen to less than the mortgage you signed? Do the right thing and live up to the contract you made.

Did you borrow on the equity of your home to buy a new car or a Nintendo Wii? Do the right thing and sell them to live up to your obligation.

Don’t pass that debt on to your children, plus a few billion dollars in interest. Do the right thing.

Don’t force everyone else to pay for your debts. Do the right thing.

Don’t hamstring other people who might later want to buy a house by letting the government artificially inflate the value of your house. Do the right thing.

Don’t panic. Don’t stampede your bank. Don’t be foolish. Do the right thing.

If this mortgage mess drives us into a recession, then it does. It’s our medicine and we have to take it. We caused it. We let Congress push their ill-advised social programs into the mortgage industry. We let them build Fannie Mae and Freddie Mac into monstrosities of fraud and debt. We let them get away with ignoring the problem then riding in to claim superhero status for suggesting that we adopt long-discredited socialist policies. Now, the Secretary of the Treasury says he has the authority to buy up shares of our private banks. In other words, he can socialize our banking system as well as our mortgage system.

We can’t let that happen. We have seen how badly it works out.

This is our problem. The consequences are ours. We can endure them. We can make it through them as generations of Americans before us have. We don’t need the government to make things worse. We don’t need to shove this problem onto our children and our grandchildren. Read this editorial in today’s Wall Street Journal for a smart way to deal with this situation. It involves pain, but not the prolonged pain of a depression, and it does with with minimal government meddling. Read this post at Heritage and the link to which it points for yet another common-sense set of solution that again do not require McCain-esque socialism.

Let’s do the right thing.

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Category: The Economy and Your Money

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