Principal Cuts May Prevent Foreclosures

I don't know about you folks but when I read this I became livid. Why should innocent investors have to suffer the consequences of careless reckless and even down right crooked lenders. They invested their money in good faith. Why should they have to give up one red cent of their principle investment.

This whole "Loan Modification" debacle will break the banks literally and figuratively. If investors have to take a hit you can bet that they won't be putting anymore of their money into the banks anytime soon. I've been opposed to government intervention from the get go but this is one time I would support the government stepping up and taking the hit instead of the private investor.

Yes, I know that it's really our tax dollars but at least we'd still have a pool of investors left over at the end of the day to start putting their money back into the investment pool and then back out into circulation. Maybe I'm missing something. If so please enlighten me.