Subprime Personal Responsibility
Monday, December 10th, 2007Gert and I are astounded when we look around. Folks are living in mansions all around us and we don’t understand how they afford it. We make decent money, but have no idea how these 4500 sq. ft. homes are built by our peers. Usually, these same folks have new cars in the driveway, take fancy vacations, and lead a life foreign to us. It baffles us.
We don’t normally have any idea of these folks’ finances. I certainly hope, however, they are not going to be bailed out by the government.
Personal responsibility means paying one’s own way. If one is in a mortgage he cannot afford, the government should not be his safety net. Remember, the government’s money comes from you and me.
This is not the Great Depression. I can foresee a time when it would be appropriate for the government to help out. This is not that time. What has happened here is that folks signed up for mortgages they could not afford; they overbought. This is akin to folks who run up their credit cards.
The system works when left alone. Because they overbought, they will default on their loans. Because of that, the banks will foreclose to recoup some of their losses. That process will have a negative impact upon the borrower and the lender. The lender will have to write off the loss and shareholders will lose. The borrower will find it difficult to borrow money because of the risk involved.
Why should taxpayers bail out those who made poor investments? Are you willing to pay the vig on my credit cards so I can run up some debt this holiday season?
If you can’t pay your mortgage, you can’t afford your house . . . plain and simple.