Who's To Blame

There's been a lot of talk lately on sub-prime mortgage rates and massive number of defaults that currently plaguing banks. Despite their problems, people are quick to blame banks and demand a bail out for the loans.

On NPR a few days ago, I heard a commentator note that it doesn't seem fair virtually no banks will go under while countless lose their home, as if it's solely the bank's fault. Missing is that banks are failing because people have default--not the other way around. A lot of people tried to buy something they couldn't afford. They didn't investigate if they could afford it. They are now paying that price.

It's certainly sad to see people think they could have something only to have it taken away from them. In some ways it's sadder than if they never had the chance in the first place. But there was no con artistry here. Just some banks offering people a way to become homeowners and many on both sides not asking tough questions. Both are shouldering the blame, as they should. Don't cheapen it by treating one of them as a victim when it's really just a bunch of bad financial decisions.