Monday, July 28, 2008

Pardom Me While I Rant For Just a Moment ..

Lately it seems that every time I watch a news program (which isn't all that often to be honest), someone is talking about how the Federal Government should be bailing people out on their mortgages due to the current state of the economy and the amount of foreclosures, etc., etc.

Nothing for nothing but I'm not real sympathetic here towards people who managed to get themselves into this sort of predicament to begin with. People don't want to buy nice little houses anymore, they want to buy these big huge honkin' houses with more space than they really need with mortgage payments that are big enough to choke a horse - heck, an entire team of horses it seems! Rather then thinking about what they can realistically afford, they sign on with mortgage lenders who convince them that they can afford something that they can't and, worse yet, they get a variable rate mortgage. Honestly, what are these people thinking?

I rather doubt that any variable rate mortgage has ever gone down so of course mortgage payments are going to escalate and before you know it, people can't afford to make their house payments and are sitting on the edge of foreclosure. Is this the government's fault? No, it isn't. Should the government bail people out? In my opinion, no - they shouldn't. People need to be more aware of what they are getting into when they take out a mortgage and ask themselves a lot of 'what if's' before signing any documents committing them to a mortgage for thirty years. A lot can change in thirty years - especially when it comes to the economy - and if you've bitten off more than you can chew right off the bat, how do you think you're going to be able to handle it as time goes on?

Obviously I'm not a homeowner and unfortunately I don't think I ever will be because I know I can't afford to own a home. Sure, I'd love to own a nice house with more room and closets and all that good stuff but realistically I know I can't afford it and I'm not going to commit to something and then expect other people to bail me out if I put myself into that sort of position. Where do these people think the Federal Government is going to get this money to bail them out? You can't just fire up the printing press and produce more money without something to back it up so instead our taxes will go up and we'll be the ones bailing out other people.

Nothing for nothing but somehow that doesn't seem right. At least not to me.

9 comments:

  1. I agree with you 100%. Life is about choices and those choices have nothing to do with the government bailing me out if I make a wrong one. It drives me crazy as well. And what about all the toys that were purchased with those home equity lines? What about those. Several in our neighborhood was doing that and there are a few houses that are abandoned or in short sale right now. Idiots! Thanks for letting me rant too. Big hug. :)

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  2. My mother and I were talking about it the other day and she said that there was some woman lamenting on the news that she had to take out two loans to buy her house but she believed the mortgage lenders when they said that she could afford it and now she can't. Can I get a big "DUH" on that one? I mean seriously - who in their right mind takes out two loans to buy a house and thinks that they can afford it?!? And we're supposed to bail her out via the US Government ... I don't think so!

    Plus these people buy not only the big house they can't afford but all of the new furniture to fill it because you can't have a big fancy house without big fancy toys.

    I understand wanting to live the American Dream but you have to know you can afford it before you do.

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  3. If I made a bad decision I would not expect the governement to bail me out.

    All this is just a market correction and the gov't needs to butt out. Folks that should not be owning houses (for one reason or another) should not be doing it, and lenders should not be lending to those people either. Too much for too little.

    And the government needs to butt out! Sheesh!

    ...I feel better now... LOL!

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  4. I'm not in favor of bailouts at all. I agree that this is a market correction. Those who can't afford homes are going to lose them, and that's just a fact.

    It's harsh, but you have to do your research and understand what you can afford. Nobody is entitled to have the government bail them out when they've made a poor decision, and I sure as hell don't want to pay for that with increased taxes.

    There are plenty of other great social programs I'll pay for, but I'm not paying for people who put themselves in a bad position by not doing their homework.

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  5. I agree with your post Linda, and with the comments here. One thing that were going through way up north is extremely inflated housing prices. A 1200 sq/ft 3 bedroom bungalow just 4 years ago was on the market for an average of $185,000. Now that same house can go on the market anywhere from $350-$400,000. We are currently experiencing a major oil boom in northern Alberta, and much of that is focused in Grande Prairie. This is where I think governments should get involved. Not everyone up here is involved in the oil patch, nor do they rake in oil patch salaries. Because of this recent boom, the entire region is jumping on the gravy train, thinking that all the roads are paved in gold (black gold, I guess).

    I'm not really sure if an over inflated housing market is part of the current problem in the USA, but I do know that it is really playing a role up here. It's putting a whole segment of the working community right out of even considering house shopping.

    Home/apartment rentals are even inflating rents just to grab a piece of this pie.

    I just don't think this kind of over inflating is fair, or even realistic in the long run.

    Just a thought
    Frank

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  6. am I psychic or have you ranted this rant before??

    anyways I'm with you.

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  7. I also agree with you, Duchess Linda, and with your commenters. Rant away

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  8. I so agree that the guvmint should NOT bail out private industry! Government was set up as protector, not PROVIDER! Getting off my soapbox here...

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  9. I've been kind of out of the loop with the news lately (I've barely watched tv in a month!)...but I do remember there being a bit of a stink about mortgage companies being in trouble for corruptive business practices-basically making people believe that they honestly could afford the houses-but then, surprising them with a crap load of hidden fees...which got them into trouble.

    Yes, there are a lot of people who went into house buying too quickly...basically jumping while the buying was good and now are suffering the consequences...but if I'm correct about the mortgage industry problems, I think the government SHOULD offer some assistance as they were not doing their job as far as making sure the companies were being regulated properly.

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