Bailing out home owners is a stupid idea
Posted by cann0nba11 on August 28, 2007
Hillary Clinton wants to take tax payer money and bail out home owners in this interesting housing market. Specifically, she said “we need to help those facing the pain of foreclosure.” How democratic of her.
Let me get this straight. In the past decade or so during a booming housing market and stock market lots of people took advantage of very low mortgage rates and bought houses that they really couldn’t afford. Maybe it was a teaser rate of 1% for the first twenty four months, maybe it was an interest-only note. The bottom line is that lots of people willingly entered into financial arrangements that were beyond their means. Now that they are entering the next tier of their ‘agreement’ their payments are going up and suddenly these people can’t afford their home. So, like an NFL athlete they think that the contract isn’t really a contract and want out. Now Hillary wants to spend a billion dollars to get these people off the hook.
Here’s a better idea. Let the people that have enjoyed living in a great house at a great rate find a new place to live. Let them move. Repo men earn their living by reclaiming property that was purchased on credit and then not paid for. Why is this any different than a house? Most rational people understand that if you can’t make the payments, you probably shouldn’t have made the purchase. And most people understand that it is not a crime for property owners to reclaim their goods. Banks lend money with the expectation that they get it back along with some interest. When payments fall through, they don’t get their money. If too much of this happens banks get in trouble. Remember the Savings & Loan bailout in the 80s? It could happen all over again.
So what the hell is Hillary thinking? What happened to personal responsibility? Oh, thats right. Hillary is a Democrat… they look to others to make their decisions for them. Maybe these people that overextended themselves need to learn a lesson about financial accountability, take their licks and start life anew. A bailout will only encourage this sort of behavior to continue. It’s the same as threatening a child with a punishment and then not following through. The child learns that your threats are hollow and that you never follow through. Or, a child throws a tantrum if she doesn’t get her way and the parent then caves in to her demands. The child then learns that all she has to do is freak out and mommy will save her again. Think of these home owners as screaming children that want their way. Maybe they aren’t screaming, they are trying the puppy dog eyes/crying tactic, but it’s the same thing.
Suck it up and find a place to live that you can afford. Thank the bank for letting you use their money to live in a place you truly couldn’t afford. Move on. Learn.