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Saturday, August 23, 2008

Honesty is the Best Policy (?)

This is a good article but also an infuriating one, as we all by now have seen that irresponsibility and recklessness pay, while hard work and honesty do not.
"Two giant mortgage companies get into hot water over risky investments. The government steps in to throw them a lifeline should they need it. Hundreds of thousands of Americans buy homes more expensive than they can afford. Congress approves a rescue package. Troubles erupt at a Wall Street investment firm that made bad bets on mortgage investments. The Federal Reserve steps in and provides financial backing for the company's takeover. Meanwhile, tens of millions of people pay their mortgages on time, don't max out their credit cards and put money into retirement funds. They may even save a little extra on the side.In return, they get rates on their savings that don't even keep up with inflation. They also are witnessing the horror of their nest eggs shrinking as the value of their homes plummets and the stock market tumbles. Washington policymakers seem more focused on rescuing those who behave badly by putting at risk taxpayers who've played by the rules and shunned the get-rich-quick schemes of Wall Street croupiers.If the government can toss a lifeline to troubled mortgage underwriters Fannie Mae and Freddie Mac, they why won't they do something for Americans who save their money?"

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