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Originally Posted by roachboy
the mortgage "bailout", if it comes, will follow from the perceptions of political damage created by the bear-stearns buyout, and not because suddenly the republicans, for example, start actually giving a damn about the regular people who are loosing their homes.
but they have to appear to give a damn.
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It all boils down to a return on investment. Banks lend money to generate capital gains via interest, legislators placate the masses to generate a climate favorable to re-election. Banks have a duty to their stockholders to return a profit, but our leaders hardly have any de facto responsibility to anyone.
Nobody will bail out the consumer because they think it's the right thing to do, they'll do it because it keeps them in office.