More on the Bailout of Lenders and Borrowers

I do not agree all that often with Rep. Spencer Bacchus (R-AL), but in this instance he is correct. Rep. Bacchus fears bailing out borrowers and lenders that willingly took on risky investments. The message sent by Rep. Barney Frank's grand compromise is that the federal government will ride to the rescue of those making ill-advised decisions. That should not be the federal government's role.

However, I empathize with lawmakers wanting to insulate regular Americans who are brought down by greedy speculators and homeowners that cannot control their impulsive spending habits. I certainly like the language in the bill calling for a modernization of the FHA. Long overdue. The ineptitude of lenders and borrowers threatens the foundation of the American economy, so lawmakers are right to respond. How they respond is the crucial issue and I take great exception at policymakers' bailout of incompetence and greed.