Housing market correction

The housing market correction continues as housing starts hit lowest rate in 27 years. I still don't see why this is such a big deal. People who purchased overvalued homes pay a price. People who purchased homes they couldn't afford pay a price. Companies that made bad loans like Merrill Lynch pay a price. The market corrects itself and everything goes back to normal. We want the market to correct itself. Government should not interfere. Government is supposed to serve everybody, not just the people who made bad decisions, and not at the expense of people who didn't.

This is another example of how government is divisive by its very nature. If government (read taxpayers) bails out these buyers or lenders who made bad deals, it will we helping those people at the expense of everybody else who made responsible decisions. The people who made bad deals will win. The people who acted responsibly will lose. Inherently divisive. How is it compassionate to punish responsible people for the irresponsibility of others?

Further, if government (read taxpayers) bails out the people who made bad deals, we will be rewarding irresponsible behavior and punishing responsible behavior. This would incentivize even more irresponsible behavior in the future, leading to worse crises and bigger bailouts. How is it compassionate to incentivize people to fail in the future?

Bailouts are just another form of welfare, and there's nothing compassionate about welfare. Welfare is false compassion. It's destructive to both recipient and provider. In order to reunite this country, we need to dramatically reduce the size and scope of inherently divisive government.