How stupid can they get?

Several years back a guy moved into my neighborhood. He had a high paying job, and purchased the best house he could afford. Not long after he got settled in, he took stock of his situation. His job paid well, and he had been there a good many years, but he didn't like it. It was not what he dreamed of being. He had always wanted to be a writer, and after assessing his liabilities and assets, decided he could live off his savings and try his hand at being an author.
His ARM was low, utility bills manageable, taxes were cheap, fuel wasn't so expensive. his investments were doing well. He rolled his retirement into it and set out to become the next Greatest writer the world had ever seen. Like Chevy Chase in Funny farm, he sucked at it, but it really didn't matter, he could live on his retirement and a part time job.
Well, economic hard times hit. The bank adjusted his mortgage. As the economy worsened, government raised taxes to compensate for other lost revenues. Fuel prices went up, food prices rose as well.
At first he compensated by charging things on credit cards, surely the economic down turn would be short lived. Soon he was nibbling at his savings. The interest wasn't paying near what he needed. Those nibbles soon turned into bites, and then into gouges. Now his savings are gone, his mortgage has ballooned due to unpaid principal, and Insurance rates have gone up as well. He wants to borrow a few grand from me, says it would be in my best interest since a foreclosure in the neighborhood would hurt my property values.
No, this isn't real, its a comparison of what is happening across the world as nations like Greece, and States like California beg others to bail them out from their own stupidity. Must we all suffer because they were fools? Let them crash, let them be divided up and auctioned off. Bad things happen to stupid people governments. let them happen. Charity is helping some one who has bad luck, misfortune, or dynamic inopportunity, its not salvaging a suicide attempt in progress by joining the jumper on the way down. They are not on the ledge anymore, they done jumped off. Blow em a kiss, and watch the splatter.
Aesop's fables are full of stories about foolish behavior. The Bible is full of parables that are very good advice. Always remember, ya can't fix stupid.