MarketWatch article on HankPaulson's Knight in Shining Armor move.

2 interesting comments after an article which described Hank Paulson’s new idea about hard-working, abiding by the rules, smart, save-the-money-buy-when-prices-down bargain shopping citizens are expected to bail out greedy lenders and naïve borrowers…

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Why do they insist on singling out subprimes?  Subprimes are less than credit worthy.  They would be better off bailing out credit worthy people who stand a chance of staying in their homes.  Subprimes will always have the highest default rates - that's why they are subprime to begin with. 

And now, the big favor they do them is to trick them into staying in the houses they can't afford, to continue to dump money into an asset that is deflating faster than the Hindenburg at Lakehurst, so they can default on the loan 2, 3, or 5 years from now?  If the government is now labeling teaser rates as "predatory lending practices" (as opposed to a legitimate discount), isn't the government itself now engaging in a predatory lending practice by extending the teaser rates?

I just don't see how this does anything useful.

If the problem is lack of liquidity in the system, this doesn't add any.  If the problem is bad loans on the books that will default, this will only delay not prevent that happening.  If the problem is negative equity due to falling real estate prices, this won't reverse that.  If the problem is inability to convert the subprime ARMS to fixed, affordable mortages, this does nothing.

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This country is really becoming laughable!  We live in a society that refuses to let people be penalized or go through any sort of real pain.  Let's see: You can buy into a huge house or move to a neighborhood you can't afford and the government will bail you out.  You can rack up HUGE credit card and other unsecured debt and the government will let you file for bankruptcy and forgive that debt.  You can have ten kids with ten different guys and we will feed and shelter you.  You can send those same ten kids to school and the schools won't give them an A,B,C, D or F because it will stimigmatize and make kids feel bad about themselves.  In Cincinnati, where I live, you can murder or rape someone and do to  the chronic shortage of jail space get out in two maybe three years!

What is the incentive to being moral and responsible in this country?  There should be real pain and suffering for your stupid a** actions!  We all make mistakes, but ultimately it should be the person who made the mistake to fix the problem or live with the cold harsh consequences.