I was listening to someone defending the president's 700 billion purchase of worthless mortgages say that it effects "everyone" so we all have to pay up. The problem is that the guy's definition of "everyone" was everyone in debt. He was saying that people who live beyond their means will no longer be able to do so if credit becomes hard to get. So what I take away from that is those of us who live within our means must pay up for the benefit of those who don't. A recurring theme on this list is that living car free allows some people to live nicely within their means and avoid or get out of debt. It makes me wonder what would happen if everyone lived within their means and avoided debt.
The nightmare scenario that they are afraid of is a repeat of the Great Depression.
Is this a realistic concern - I think it is.
Will the bailout help prevent it, and if we do nothing what happens? Hard to say..
I am in a no-debt situation. No mortgage, no car loan. No credit card debt that I don't pay off every month. Yet my concern is that if the economy really tanks we could all be out of work, so I can't really argue for the "screw them" option.