Sowell on 'Saving the Housing Market'

http://www.futureofcapitalism.com/2011/01/sowell-on-saving-the-housing-market

Thomas Sowell has a new column on attempts to "save the housing market":

No doubt some people who are facing foreclosures might have been able to continue making their mortgage payments if they had not lost their jobs. But since when were we all guaranteed never to lose our jobs? People used to put money aside "for a rainy day." But now people who have spent like there are no rainy days are supposed to have the taxpayers pay to give them an umbrella.

What about the people who saved and put their money in a bank? Those who blithely say that the banks ought to modify the mortgage terms to accommodate people who are behind in making their monthly payments forget that, however "rich" a bank may be, most of its money actually belongs to vast numbers of depositors, most of whom are not rich.

Those depositors deserve to get the best return on their money that supply and demand can offer. Why should people who save be sacrificed for the benefit of those who spent more than they could afford?

by Editor  |  Jan 5, 2011 at 10:09 am Related Topics:  Banking, Housing receive the latest by email: subscribe to the free futureofcapitalism.com mailing list