Caroline Baum on where bailouts come from:

“Let’s move on. Did Mrs. Adams tell you how we got into this mess? Banks loaned money to people who really couldn’t afford a home of their own. When house prices started to fall, these homeowners had no way of paying the interest on the loan. So they lost their homes.”

“That’s sad, Dad. Are we going to lose our house?”

“No, son. Your mother and I have always lived within our means.”

“What happens to the people who get kicked out?”

“The government has been trying to help, encouraging lenders to give them new loans.”

“If they couldn’t afford the old loan, how can they afford the new one?”


Print Friendly, PDF & Email