While I’m generally against this sort of market intervention, much of the blame can be placed squarely on the shoulders of the idiots running our government.
So, you trust the people who caused the problem to fix the problem by doing more of the same thing they did to get us here?
Put politicians in charge of stuff and see what happens.
The money system....you get this stupid experiment in social engineering, totally against any sort of common sense.
The borders....dag....Leading Your Country 101 and look they done let all of Mexico waltz in.
Wars....if it weren’t for the soldiers provided by we the citizenry God knows we’d probably lose them. As it is we always end up walking away without any kind of secure victory cause like I said....the politicians get involved and it all goes to hell.
Obviously they shouldn’t be bailing out these people with underwater mortgages. How the hell did they get underwater mortgages anyway?
So they have a house worth $300,000 but the mortgage on it is like $450,000? How did this happen?
I must suppose the house depreciated in value to the tune of $150,000 since its purchase but that doesn’t make a whole lot of sense if the market were working right.
I’ve bought three houses in my life. For each the bank had appraisals done. I had to have at least 10% down and none of that down payment could be a loan from somewhere else. Banks running like they were supposed to would never be loaning over a hundred grand past the home’s value.
Before able to get a mortgage on one house, they found out that I had been late with ONE car payment. I had to write a big long letter about how that happened and promising first born that it would not happen again.
My in-laws gave us, as a gift, a thousand dollars on the first home. they had to write a letter stating the money was a gift and would not have to be repaid.
We did get home equity lines of credit on our various homes but our line of credit never exceeded 80% of the appraised value of the house (and we HAD to get it appraised again), less the current mortgage.
It ain’t rocket science. But you had to have a job, you had to have some money put down so your sweat is in the house, you had to pay your mortgage, insurance and property tax every month.
But you got voters with no jobs, unable to save down payments for the drugs, and, if able to buy a house, immediately take out big home equity loans and use up all that money.....
Like I said....a politician’s job is to get votes...NOT to legislate for a greater good.
It’s because we forget this that everything gets messed up.