Don’t Blame Homeowners for the Foreclosure Crisis Without Blaming Big Government, Too
By Nick Adama
Many of the discussions of people facing foreclosure categorize them as greedy, overspending, and having no one but themselves to blame for their poor financial conditions. Individual homeowners, despite their lack of financial resources and lack of financial education from government schools, are held responsible for their inability (or willingness) to adequately inform themselves about the mortgage contracts they were entering into.
However, just the opposite seems to be true of the government, which has also overspent, raising its own debt limit and inflating the currency to finance war and welfare programs. But now that a systemic financial collapse is leading to recession, the government is considered to be just another victim of the economic crisis.
Obviously, this perception is due to the fact that the government controls the message through its collusion with the largest media companies. For example, General Electric, one of the top defense contractors in the nation, receives corporate welfare to build the equipment used in war. GE also owns NBC, one of the largest media companies that are able to control what people hear about issues. Government can control the money that goes to GE for defense contracts, and NBC can control the message heard by consumers about certain politicians.
Both government and media companies have an interest in remaining on good terms with each other, even at the expense of the average homeowners. It is not that homeowners actually are more responsible than the government for their own personal economic catastrophes. It simply influences how people feel about the government and their own finances.
It is also said that only government bailouts will help the situation now that there is danger of a widespread financial collapse of the banking system. Thus, people should expect to have to give up more in taxes and purchasing power in order to give government the resources it needs to grow and create new help programs.
However, it is never said that government policies created the problems in the first place. No media company will allow coverage of the reasons why the Federal Reserve lowering interest rates inflated the housing bubble, and why further interest rate manipulation and liquidity injections will only lead to more problems.
But this should not come as any surprise. When the government can influence the message in the media, then no economic recession will be blamed on any institution of government. It is much easier to shift the blame away from the government and politically-connected interest groups and corporations onto the politically weak people. This results in blame for the problems being given to people while credit for economic success is given to the government’s wise policies handed down by the benevolent philosopher-kings.
More of what is not being said is that the government is run by evil idiots who are now see themselves as victims of their own poor economic policies. Of course, the issue of government centrally planning the economy will not challenged, despite the fact that it has led to hundreds of thousands of homeowners facing foreclosure with potentially millions more to come. Only people can act in the economy; no one group can direct it without unintended consequences.
But government is more responsible for the foreclosure crisis than are most homeowners who are losing jobs or facing medical emergencies. That is a message that will not be widely spread, though, because of the myth of government benevolence. But hopefully the economic devastation in the housing market will help more homeowners realize that government creates the problems and then offers solutions that make the problems worse. Instead of blaming just greedy homeowners, banks, mortgage brokers, and real estate agents, maybe it is time to reconsider the government’s manipulation of the economy and hold it directly accountable for the fallout of its unnecessary economic manipulations.
The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with relevant and important foreclosure help and resources. The site describes various methods that may be used to save a home, such as foreclosure loans, mortgage modification, short sales, bankruptcy, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.com/