Joe Friday

Bill Gross: If Housing Prices Decline Further, So Does the Economy

The irony in your column is that you are suggesting some form of government intervention, since we are all paying the price anyways. Not true. If the government bails out the borrowers, the taxpayers will be paying the price for the excesses of those who either bought more home than they could afford, or borrowed more than they should have to support their lifestyle. Your suggestion that those who are responsible are already paying since the rates they receive on their saving is low, is not a fair one. Those who have capital can now buy the assets that will be sold at a loss and profit when they reflate, rather than the irresponsible borrowers who are now in trouble.
Nobody should expect to get rich off their home appreciation. There are no guarantees of real estate appreciation. Some people are learning that lesson now.

In the end, there is a loss to be taken. The loss should be taken by those who gambled and lost, and not the taxpayers.