Many “responsible” homeowners are upset at the fact that lenders are bailing our irresponsible homeowners.  This raises the question as to whether or not homeowners who are defaulting on their mortgage payments deserve to be bailed out, or should suffer the consequences of acquiring a loan they could not afford.

The government has decided to move forward with the homeowners bailout because this issue is so severe and widespread.  At this point it is in everybody’s best interest to stop it from growing even more, because it is hurting everyone.  Anytime a home is foreclosed on, it affects the homes around them.  Foreclosures can drop your home value as much as 9%.  Foreclosures are  hurting your local schools, businesses, and the local economy, in effect put your job at risk.

Earlier this year Federal Reserve Chairman Ben Bernanke said we need to compromise this issue of moral hazard for the greater good.  So in reference to the homeowners bailout, the answer is yes, we need to help those homeowners who took on these loans they knew they would not be able to afford in efforts to stabilize the economy.