I still plan to vote for John McCain, having been left with no better alternative, but his latest proposal to buy back mortgages is madness. This whole bailout is madness.
http://ap.google.com/article/ALeqM5hfHkP_o1JurPm5e9mEZEFMFKaJwgD93MGJPG2
When is someone going to have the guts to tell the American people that this is a mess that we can't buy our way out of? I've not heard a single public figure admit that the average American shares some responsibility for the current financial crisis. Here's what I WANTED to hear during last night's presidential debate:
Question: "What would you say to those Americans who are faced with losing there homes amidst this financial crisis?"
Answer: "If you are an American that currently has a mortgage which you cannot afford, we are sorry. We are sorry that low interest rates have led to over-inflated home values. We are sorry that lending companies enticed you with aggressive and risky mortgages making you think you could afford a home that was too expensive. We are also sorry that you chose to get yourself into a financial commitment that you knew was going to be difficult to honor. We are so sorry that we're all in this mess, but we may not be able to help you."
"If you are a home-owner and can't afford your mortgage payments, we recommend you sell the home immediately, because this situation may get much worse before it gets better. If you have to sell the home for less than you owe, you should continue to make payments after the home is sold until you have fulfilled your contract."
"If you own a home and can just barely make payments, please do everything in your power to keep from defaulting on that loan. If it means selling your car, cancelling cable TV and Internet, or making sack lunches, do it. We can't afford unnecessary foreclosures."
"We can get through this, but it is going to take some sacrifice."
Wednesday, October 8, 2008
Madness
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9 comments:
I wholeheartedly agree---lets include the American People as part of the blame. I'm going to copy this onto my blog if you don't mind.
Not getting into how the government played a part in this, because I don't understand all that. But on the topic of home-owners...
It is very sad that people are losing their homes. And if they are losing their homes due to a lost job which job loss resulted from the market crash caused by the housing bubble burst (how do you like that string of words, huh?) then even sadder still.
But I agree that a lot of people have made poor financial decisions. I remember Mom saying a few years back about how the interest-only option (buy interest only and sell right before the payments go up) was such a bad idea, because what if you can't sell it and can't afford the full payments when the interest-only period is over. I think Mom called it even before that guy in the YouTube video. :)
Anyway, Christian and I could have done that, but we decided not to since it was a bigger risk than we were in the position to make. We could never afford the full mortgage. So if people took that risk knowing it was a risk, then they are facing the sad consequences of risk. And if people didn't know what they were getting into, then they are facing the sad consequences of not being self-informed. And as sad as it is, I agree that hard times come and it's up to us to get through them.
And I've seen first hand how people aren't willing to make certain sacrifices even when on the verge of losing their home and it's mind-boggling.
well said.
all I wanted to hear last night was. Mitt, my good friend, will take care of that!
Totally Agree! What is so wrong with renting??? It is what you should have been doing like the rest of us responsible citizens instead of feeling you "deserve" a house and getting into something you couldn't afford! I do not care if you lose your house - you shouldnt have been in one in the first place! Obviously I feel we should extend lots of compassion:).... I actually do feel bad for those that are responsible and have to move at this unfortunate time and are stuck with problems, but I think the majority was counting on fake money and I am frustrated at what it is doing to jobs and the economy.
I think there is a fine line between the responsible and irresponsible. Ashley and I were very close to purchasing a home here in the Bay Area in 2006 and finally decided it was too risky and would stretch us too far. However, that decision only came after lengthy debates and much number crunching. It could have easily gone the other way and we would have been left with a home that was worth less than we owed. But I do think that almost everyone in got themselves into that situation knew there was some risk and they knew it was going to be difficult. Noone borrows hundreds of thousands of dollars without the feeling that they are entering into a huge commitment. and very few people do so without balancing how much they earn with the monthly costs of a mortgage. And at the end of the day, they entered a contract and should do everything they can to make good on that agreement.
I should clarify my "irresponsible" comment, there was a girl I worked with who purchased at house with NO money down (bc she had no savings and credit card debt - all those $400 shoes), with an interest only loan. She could barely afford the interest only payments, had to ask for a raise and then when asked what she would do at the end of 5 years when the payments increased she said she would just move up to a bigger house to start it all over again - keeping ahead of actually paying. SHE is the person who should not be in a home, those that took advantage of all the stupid offers(another issue) and really shouldnt have been in homes. Most arent as bad as her and good people are getting hurt....OK I think I am done ranting in your comments section:)
That makes me so mad. People like that don't deserve to be bailed out.
In response to your wish for someone to identify the American public as part of the problem, Sarah Palin did just that in the VP debate. She was clearly a little hesitant, and didn't put all the blame on us - but she did address the irresponsibility of so many Americans living outside their means.
Not really a huge fan of her and McCain either, although they'll get my vote, but thought you'd like to know someone has at least hinted at personal responsibility.
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