When the Obama Administration announces a $25-billion deal with the big banks to finalize and settle the lawsuits in the mortgage foreclosure crisis the lack of any deterrent effect, result or outcome from banks having foolishly lent too much money to those who couldn’t afford to pay it back is obvious. And the resulting actions are predictable. “Hey….we’ve got ALL this money to play with and risk. It’s not ours. But let’s be as risky with it as possible. After all, if we lose it, the government will pay us back. Just like before.” 

The soon to be announced settlement would pay those 750,000 whose homes were foreclosed upon $2000. It would also reduce the principal by $20,000 for those 1,000,000 underwater home owners who owe more than their homes are currently worth. For those who did the right thing and didn’t borrow against their home’s equity for trips or new cars or upgrades, didn’t miss mortgage payments, and still lost tens-of thousands, even hundreds-of-thousands of dollars in their home’s equity…you get bupkis.

When a business operates a company selling a product for less than it costs to make, it used to be that that company would not be long for this world and that it’s owners and executives would find themselves losing money, stature and reputation for so foolishly trying to run such a company. But in the Obama world companies like Solyndra get $500-million loans which don’t EVER have to be paid back. And

Solyndra Executives have the President of the United States praise them as forward thinkers in the new green economy right before skating off with bonuses in the millions of dollars and closing the doors on the worthless company.

Car manufacturers give in to oppressive unions and agree, amongst other things, to pay laid off workers 80% of their salaries while they don’t work. The companies make cars that break down far too frequently compared to their foreign competition. They create cars that people don’t want. They go bankrupt. And the government gives them $14.1-Billion which they never have to pay back. Reminds me of the old line from Humphrey Bogart‘s “Treasure of the Sierra Madre“. “Consequences? We don’t need no stinking consequences!”

Wouldn’t it be nice if all these mistakes made by individuals who bought too much home or borrowed against their equity and had no cushion when prices fell actually started again, saved their money, bought homes again in a few years and paid down their mortgage…like our grandparents used to do?

Wouldn’t it be nice if banks returned to being a safe place to put your money and a place you could count on to be there through the tough times, instead of risk takers with our money devoid of any conscience? A partnership with a bank less interested in growing its riches and more interested in growing the community it serves.

And wouldn’t it be wonderful if American car companies made vehicles we all wanted and that were affordable and didn’t break down inordinately. Learning how the market trends and meeting the market’s needs. And in doing so we could return to Henry Ford’s way of thinking to pay his workers a decent wage and price his products so that his workers could afford them.

We all learn from our mistakes provided our mistakes come with negative consequences. With no consequences we’re all equally likely to go traipsing down the same road that got us into this mess to begin with.

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