BAILOUT: Yes or No?

[Ironside]

Read about what the GSEs are and what they did and you'll begin to get the picture.

So if I got it right, they've problematic by making a bubble safer earlier on and then by being "too big to fall", they made the investor think that if/when the fecal matter hits the fan the goverment will bail it out.

While I can see that it's enforced the problem, but it also operates on the basic premise that the investors would gladly make a profit by creating a damaging economic situation and risking an economic failure.

You really got low expectations of how an economic system should be run if you consider it the best option to get those people free reins.

As for the bailout, a reluctant yes, if done properly it would keep the economy up, mostly repay itself back and give the investors a nasty burn aswell.

Of course, this is the Bush administration so it's probably the other reason. Short term benefits to keep the econmy up is better than potential long terms, as this debacle is dragging our own economy down atm. Long term downsides is easier to prepare against

In no other advanced country would people work under the same conditions as in the US... why do they do it? Because they believe in the american dream.... Never mind the american dream will never come to you ;)

IMHO the american dream is partly directly responsible.

Isn't one part of that dream to own your own house?

Spoiler Alert, click show to read: 

Of course, compared to the "outsmarting a bubble" syndrome it's small potato.