Bailing on Bailouts

Any government bailout of either borrowers or lenders would have to be financed with money taxed from other people—and that would be utterly unjust ["McCain Joins the Bailout Bunch," "Capital Commerce," usnews.com].

Lenders knew—or should have known—the risks of making loans to individuals who had shaky finances and deserved little, if any, credit. And borrowers knew—or should have known—the risks of taking loans that they might not be able to repay. In either case, lenders and borrowers are responsible for their decisions and should bear the consequences of their mistakes (or misfortunes) on their own. Why should responsible, hard-working individuals who pay their mortgages and rents on time, or who already paid for their homes, be forced to pay also for the mortgage of others who defaulted on their obligations?

David Holcberg
Ayn Rand Institute
Irvine, Calif.