| I am not in favor of corporate welfare to the degree that is is currently done. But I wouldn't classify the Bear Stearns deal was corporate welfare - or a bad deal. All the FED did was agree to offer a $29 billion CREDIT LINE to JP Morgan in exchange for collateral of around $30 billion worth of Bear Stearns assets. It's not like they said here's $30 billion tax dollars go buy Bear Stearns and keep the change.
Not something that I would classify as a tax payer funded bail-out or a government backed corporate handout. It is a line of credit that is to not only be paid back (should it be utilized) but also had other benifits to the market in regard to stabilization at the time the move was made.
As for the homeowners - most of these folks should not have been given the loans in the first place. All the market is doing is correcting those earlier mistakes (approving the loans earlier).
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"Religion is an insult to human dignity. With or without it, you'd have good people doing good things and evil people doing evil things. But for good people to do evil things, it takes religion" - Steven Weinberg |