If they can't afford it, they shouldn't have gotten it. Why that happened has been covered in the above post. Did you read every word in your mortgage when you signed it (if you own your place of residence)? Did you read every word in your car loan? I'm sure a small percentage of these defaulting loans were people being personally irresponsible, but just generally speaking, who do you trust more? A used car salesman or a person buying a car? //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif
The rest of the quoted section is either a correct assertion or not relevent. I'm a responsible person. My fico score is above 750. The baby boomer generation was handed a time when credit was exploding and nobody knew the morals or pitfalls of credit cards. I truly believe that by and large Gen Y has learned something from that, or are at least aware of the problems they are getting themselves into with credit cards. I had a high school math teacher back in 1998 that used credit card interest for nearly every word problem she gave us. It's not the end of people being irresponsible with credit, but the lessons are now well documented.
I'm not complicating issues. The issues are complicated. And yes, the government is only institution with the ability to correct this problem. It's Macroeconomics 101. When business investment, household buying power, employment, and imports/exports are all tanking, the government is the only entity capable of ceasing the downward spiral. The macroeconomy is a feedback loop, and right now we're on a drastically negative feedback cycle. Without someone with the paddles to stand over it and yell "CLEAR!" the industrial heart of America will stop beating.
They can't get social security right because old people vote, and like I said, rule number 1 in politics is don't get voted out. Something will happen to social security in the next 20 years. Either it will be drastically cut back (or abolished entirely), or it will simply run out of money and the monthly checks will stop showing up in mailboxes. Both parties have done bad with social security, but I'd just say that republicans had all three legislative branches of government for 6 years and nothing happened. Clinton's goal was to run a surplus for the forseeable future and use that money to replenish the coffers of social security for the baby boomers. Say what people might about presidential BJs, Clinton did good with the economy.
I've already discussed common sense, and how much it doesn't make sense on these big complicated issues. And again, I'm not standing up for anyone that pushed for deregulation in the 2000s, D or R. Rs are pushing for it still if you watch the interviews on the cable shows.