Once Again, Government to the Rescue

The housing market has taken a bath and there are people who can no longer afford their mortgages because they bought more house than they could afford and then adjustable rates kicked in and buried them. This is one of those things that should be between the borrower and the bank from whom he borrowed but not in the nanny state. The government is trying to force mortgage rates down and is injecting itself into this “crisis.” Government does not belong in the mortgage business. Sure, it would make great sense (and help prevent foreclosure and a loss of money) for the banks to sit down with homeowners and work on some kind of fixed rate mortgage or extending the term to 40 years but this should be between the two people who signed the contract and the government should not be involved.

Today, there is word out that the government is looking at ways to fix the problem of lost equity on a home. Many people out there paid too much for their home and did not put anything down and now the price they can sell it for is less than they owe on it. Basically, they would sell their house and still owe money at closing. Many of these people make really good money so it is not like we are talking about the poor having problems. What we actually have here is a bunch of people who think it is wrong for them to take a loss. They believe they deserve to sell their homes for a profit and they think that the government should step in and fix it so they get what they want. It is that attitude that got them in the financial mess in the first place.

There are some banks that want the government to buy up the loans and then refinance them at a better rate for these people. It is amazing that people want the government to make up their losses. Any money spent by the government has to come from other taxpayers which means that once again responsible, taxpaying people will be bailing out those who were not so responsible. It is not the job of government to run a mortgage business and it is not the job of government to bail people who made bade decisions out of their jam.

If people are having trouble with their adjustable mortgage they should find a way to refinance at a lower, fixed rate and they should pay the closing costs associated with the transaction. It is up to the individual to do this and not the government. If people are upset because their house is worth less than what they paid for it then they need to just stay in it and keep paying the mortgage. If it will hurt financially to sell then don’t sell. Stay where you are and keep paying the house payments. The next time the market goes up your house will be worth more and taxpayers will not get soaked paying for your selfishness.

A recent commenter indicated that I had a bad upbringing and must not be loved because I think it is criminal to take a worker’s money in taxes and then pay for social programs like universal health care for everyone. This person, without even knowing me, said it would not hurt me to pay a little more in taxes so that the kid who pumps gas down the street can have health insurance. This person lacks the ability to see that it is wrong and immoral to do this. If I am to pay these things it should be voluntary, not coerced. Additionally, I am only obligated to provide for my own children.

I asked what was next, I had to pay more taxes so the kid at the gas station could have a house like me because he deserves it. It would appear that I was not very far off if our tax dollars will go to bail out homeowners who made bad decisions.

Pretty soon the government will have people to clean up after us when we use the bathroom because we will not be capable of taking care of ourselves at all.

The sad thing is, there are people who would like that and who would believe that it was a God given Constitutional right…

Source:
NYT

Big Dog



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