Mortgage/Banking Crisis

So the big news of the day is the federal government's plan to bail out some more major financial institutions that have been crippled by the developing mortgage and banking crisis. For those of you who don't know what the fuck I'm talking about, let me give you a little background on this crisis that poses a serious threat to the American economy. During the recent housing boom in which American housing prices skyrocketed over a period of several years, it became increasingly difficult for Americans to afford homes as wages did not keep pace with the price increases. Therefore, the only way for many Americans to afford homes was by taking out ultra-risky mortgages such as interest only loans that would keep their payments affordable. The problem is that these kinds of loans are SO FUCKING RISKY AND STUPID TO TAKE OUT. People with interest only loans could be living in their home for months or even years without paying any principal on their mortgage, meaning they own exactly 0% of their home. So when the time comes to actually start paying the principal down and they still can't afford it, they say, no big deal we'll just sell the thing because it will keep appreciating in double digits FOREVER. Wrong!!!! So when people can't just unload these houses that they could never really afford to begin with they are... fucked, foreclosed. So of course foreclosures are at a record high right now and with prices declining the banks are sure having a fucking hard time getting rid of all these houses that are losing their value and that nobody really wants. So the banks are fucked too, so fucked in fact that the two biggest underwriters of U.S. mortgage debt, Fannie Mae and Freddie Mac, would not be able to survive much longer without a multibillion dollar bailout package from our federal government (wait, the federal government doesn't have money either, I mean don't we have a7 trillion dollar national debt or something... fuck it we'll borrow more from China). While I guess the federal government has little choice in bailing out these financial behemoths as failing to do so would wreak havoc on the already beleaguered financial sector. I really question the principal of the government's new policy of bailing out these giant corporations. I mean, nobody forced Fannie and Freddie to offer these dumbass loans to people trying to buy homes they could not possibly afford. It was the typical greedy banker mentality that really couldn't give a rats ass if the loan they were offering Joe Schmoe was probably going bad in a few years as long as the banker got his commission that day. These irresponsible loaning practices created a positive feedback loop of increased housing prices when increased demand from a new class of buyers that could never afford homes with traditional loans forced prices up and up. So now the banks are fucked and the government is bailing them out, how nice of them. So far the government has already bailed out the ex-super sexy master of the universe Wall Street giant Bear Stearns... sure the stock might have collapsed but all the company's bigwigs walked away fat and happy as the company fell apart. The same scenario occurred a few days ago when the government announced its multibillion dollar assistance package to the failing California bank, IndyMac. The feds could never possibly let such titans as these fail.
Now as I previously stated, the government has little choice but to intervene here or the economy would really collapse (imagine where the Dow would go if the two companies owning half the mortgage debt in the U.S. all of the suddenly went bankrupt. Put me on the next flight to Australia...). It seems kind of like a huge crock of horseshit though when the Bearn Stearns' and Freddie Mac's of the world are too big and important to fail according to the government. Look to the passage in the constitution that says: "If you're a major bank the government will not let you fail, we will put the country further and further into debt and save your big fat incompetent asses with billions in free money." That's a couple lines above where it says, "Oh yea and for the rest of you, when the economy goes to shits and everything sucks you can go fuck yourselves. There's a bunch of empty parking spaces outside Best Buy so buy a shitty used van, park it there, sleep in it, eat shit, and shut the fuck up or you'll be "interrogated" wink wink in a CIA prison overseas." This is an unacceptable double standard: major financial giants are given billions in government aid to prevent them from going bankrupt while small business owners who create two thirds of the jobs in this country can eat shit and die when their business fails... God bless America, land of the free, with opportunities for all.
Okay so I've concluded that the government does need to bail out some of these big companies but that's it's hypocritical bullshit... so what now? Now we figure out how the hell we got into this sordid mess in the first place: NO GOVERNMENT OVERSIGHT OF IRRESPONSIBLE CORPORATE SHENANIGANS. That's right... Dick Cheney, please make sure your pacemaker is working if you plan to continue reading this. We need to regulate, period. The Great Depression was largely caused by reckless trading practices on Wall Street during the 1920's that created millions in imaginary wealth overnight, only to fuck the whole world's economy up for the next 13 years or so when people realized how overvalued those stocks were. The stock market crash of 1987 was widely blamed on the lack of oversight on Wall Street as that fucking prick Ronald Reagan did everything he could to deregulate the financial industry during his 8 years as warlord. And of course, the tech bubble that burst in 2000 was caused by irrational exuberance on Wall Street and people funneling billions of dollars into these little tech companies that not only had no earnings but I still have no fucking clue what half of them did. But hey, why have the government get in the way of the market? After all, the market represents the will of the people and anyone who wants to interfere is an economic elitist snob, right? WRONG! Capitalism and regulation are not mutually exclusive. The government can and should regulate financial markets in order to ensure a stable economy. The government needed to intervene and stop the banking industry from offering so many risky loans to people that were too ignorant, stupid, or easily manipulated to make financially sound decisions. True, such regulation would have kept housing prices from skyrocketing so much, but it also would have prevented the current meltdown in the banking industry. It's okay for the government to intervene in markets. Period. Capitalism is a great economic system for creating wealth and provides sufficient incentives for people to try and further their own economic self interests. However, as history has shown us time and time again, unrestricted capitalism creates instability in markets and ultimately recession. Hopefully America will learn its lesson this time and do a better job stabilizing its great economy. I'm hitting the gym, peace.