Bailing out the banks is rewarding bad behavior. - Today’s Headlines 7/21/08

[Caro]

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Borrowers and Bankers: A Great Divide (by Gretchen Morgenson at the New York Times)
THE credit crisis has exposed and worsened a dangerous and deepening divide in this country between a vast number of average borrowers and a fairly elite slice of corporations, banks and executives enriched by the mortgage mania. Borrowers who are in trouble on their mortgages have seen their government move slowly — or not all — to help them. But banks and the executives who ran them are quickly deemed worthy of taxpayer bailouts.
What was that about moral hazard again? We bailed them out in the 80s, now we're bailing them out in the oughts. They won't stop behaving recklessly until we enforce some regulation on them.—Caro

Matt Davies

For more headlines, visit MakeThemAccountable.com.

Carolyn Kay
MakeThemAccountable.com