Binghamton University expert
Bailout of subprime lenders and borrowers

David Louis Cingranelli
Professor of Political Science
Department of Political Science
Binghamton University, State University of New York
Tel: 607-777-2435
E-mail:davidc@binghamton.edu
http://www.binghamton.edu/polsci/people/cingranelli.htm

Expertise: Cingranelli maintains a longstanding research program focused on ethics and American public policies, with a particular interest in worker rights in America and globally. He has begun writing a book-length manuscript on the subject of workers’ rights in America.  He is qualified and willing to discuss the policy platforms of the candidates for the presidency.

On subprime lenders and borrowers: Most proposals to bailout subprime lenders and borrowers reward greedy and irresponsible behavior by both. Bailout policies will be costly to taxpayers, encourage future bad behavior, hurt the innocent, and help those whose greed created this situation. When banks do well, they give their executives and boards outrageous pay packages, appealing to the free market to justify their actions. When the opposite happens they beg taxpayers for a handout.  Can you think of a better example of corporate welfare? Many borrowers are not blameless either. Some lied on their loan applications. Others put no or little money down. All while the lenders winked and grinned.  Bottom line: Government policies only should help low-income, truthful borrowers who can demonstrate that they were victims of deceptive lending practices. Taxpayers should not help lenders trying to make a lot of money fast or borrowers who wanted a lot of house for little money.