What Bush Won't Say to Help the Market

Some short-sighted critics will call this a bailout. Some economists dwelling on theory will say that it creates a problem. They have a fancy term -- moral hazard -- for this. They scoff at the steps that are needed -- and needed right now -- to keep our country strong, preserve housing values and avoid a recession. This attitude is wrong, and threatens our economic strength and security.

Those who have made mistakes have already been punished -- some of them severely. Top executives have been fired. Stocks of leading companies have declined. Investors have lost heavily, and some Americans have lost their homes. Enough is enough. The lesson has been learned.

The effects have now moved far beyond those who made the mistakes. With us tonight in the gallery are several people who can testify to this.

Hank (gestures to the gallery) is a small businessman, a contractor. He has built his business over 30 years and employs 25 people. He works for construction firms building homes. Some of them now owe Hank a lot of money -- over $30,000 -- and they are unable to pay him. Hank did nothing wrong. He just worked for the same people he has for many years. Now his employees face layoffs and his business is threatened. He is an innocent victim, and so are his workers.

Juanita is a middle school student. Her school depends upon property taxes from a community that was, until recent months, rapidly growing. Now the school is cutting back on everything -- the athletic program, field trips, textbooks and teachers. Her family is current on their mortgage payments and taxes, but that is not true for their neighbors. Her parents both work (her dad works two jobs), but they are victims of their neighborhood, where houses are now vacant and taxes not paid.

Jack is an urban professional. He recently got a nice new job requiring a transfer to another California city. He has two problems. He cannot sell his home, even though he has a qualified buyer. The buyer cannot get a "jumbo loan," which is really just an average house in his city. Jack is having a similar problem getting a loan at his new location. The Rutledge family did nothing wrong, but they are victims.

Harvey is a deputy sheriff in a prosperous Illinois county. The county property tax revenues are declining and the budget faces cutbacks. Even though security needs are high, the public safety budget is being cut. Mr. Collins is a victim of the credit crisis, and so are the citizens of his county. They now face a higher risk of crime.