WSJ Offers Weak Tea In Ginning Up Subprime Ire

The WSJ makes a page one attempt at drumming up some sympathy or ire or anything regarding the 'subprime mortgage crisis'. The media continue to try to pass this off as a story about corporate evildoers preying on the unsuspecting. As I have noted before, there were bad corporate actors in this whole mess - who are getting their comeuppance in the form of bankruptcies and ruined careers - but just as big a compenent of this story is personal greed, irresponsibility, and financial ignorance.

Check out the damning evidence that made it above the fold on the front page of the WSJ:

"Over the past several years, seven of the 26 households on the 5100 block have taken out subprime loans, typically aimed at folks with poor or patchy credit. Some used the money to buy their houses. But most already owned their homes and used the proceeds to pay off credit cards, do renovations and maintain an appearance of middle-class fortitude amid a declining local economy." (emphasis mine)

So it seems that "most" of the people in the subset of folks that the WSJ feels is representative of those that got caught up in the swirl of the subprime crisis are profligate, or in one way or another financial irresponsible. If you are dumb enough to pledge an asset, your home equity, to fund a lifestyle beyond your means, well...should we really feel sorry for these people? Should we crimp the risk-based lending industry, hurting only the largely prudent lenders who remain in business, because there high-living ignoramuses out there?