Comments on: We did everything right…, and now we may have to pay anyway!

By: rummuser

rummuser — Fri, 26 Sep 2008 09:57:33 +0000

Here is an interesting article on something similar to what I had commented on in my earlier comment here:
http://edition.cnn.com/2008/LIVING/personal/09/25/money.pushers/index.html

By: Mike Goad

Mike Goad — Thu, 25 Sep 2008 22:24:38 +0000

@ Akemi – I do agree that they are responsible for their own mess to a degree. However, without financial deregulation, it would not have been as easy for them to get into the mess — and we would not have so many people in the same situation.

Even without new regulations yet, we had to prove income for the loan on our new RV and we have not had to prove income for any loan for years — and we we pleased to do it!

By: Akemi @ Yes to Me

Akemi @ Yes to Me — Thu, 25 Sep 2008 15:11:00 +0000

Well, I do think people who went onto that easy financing wagon are responsible. It doesn’t take much math to figure out they were doing was disastrous. And we are responsible for our awareness, including learning and doing math.

Creative financing has its place. It works very well for real estate investors who know what they are doing.

By: Mike Goad

Mike Goad — Wed, 24 Sep 2008 21:23:23 +0000

Jean – It is interesting, but poor fiscal responsibility has been in the news for a long time before the variable interest rates started deflating the housing bubble. I think that may be part of the reason that some folks think most others aren’t fiscally responsible, when the truth of the matter is that most regular people are, even though many of them are right on the edge.

If financial deregulation had not been approved by Congress and the President, this whole mess would not have occurred. Of course there would also be a lot fewer McMansions.

By: Jean Browman--Cheerful Monk

Jean Browman--Cheerful Monk — Wed, 24 Sep 2008 20:03:18 +0000

I’ve been dealing with my anger this week, too. My husband and I are like you, we’ve always lived well within our means and are being told we should help to pay the debts created by the gamblers who have made their big bucks and have caused the financial crisis. I’ve been trying to keep up to date on what’s happening and have written and phoned my representatives in Congress.

I’m especially angered by the administration’s view that (1) the taxpayers shouldn’t receive warrants so we can retrieve part of the money when the institutions profit again, and (2) that we shouldn’t limit compensations of the executives of the institutions in trouble. I also worry that will just mean bigger government, but give me a break. This present mess and the administration’s proposed solution is sick, sick, sick.

I was also incensed when Dylan Ratigan on the NBS Nightly News said we’re all to blame for the crisis because we’ve all fallen for the idea of easy money and have borrowed. I don’t expect a response, but I did write to NBC, too. Don’t you find it interesting that a lot of people don’t believe anyone is fiscally responsible?

By: Mike Goad

Mike Goad — Wed, 24 Sep 2008 13:54:47 +0000

@ rummuser – Your comment got identified as spam, but I check that regularly just in case.

I agree that it is unfortunate that so many younger people got caught up in all of this financial irresponsibility. It was too easy.

By: Mike Goad

Mike Goad — Wed, 24 Sep 2008 13:33:06 +0000

@ Friar – Apparently, though, some of them are being investigated by the FBI for fraud!

By: Friar

Friar — Wed, 24 Sep 2008 04:15:33 +0000

And of course, the CEO’s responsible for this disaster will probalby all retire on 7-figure Golden Parachutes.

(Which the $700 Billion Bail-out will probably help pay for…of course.)

By: Mike Goad

Mike Goad — Tue, 23 Sep 2008 21:54:44 +0000

If they do it right, it won’t be a $700,000,000,000 bail-out. Ideally, it’ll be a buy-up of many of the loans, but the loans will still have to be paid back. One problem is that some portion of the loans will not be paid back and there will be foreclosures, leaving the government holding seriously devalued properties. Another problem is that it is more government involvement. While the intentions may be good, there is more options for government screw-ups.

By: rummuser

rummuser — Tue, 23 Sep 2008 15:54:13 +0000

I am with you on this all the way. We have lived that way too and have no regrets. It is however very painful to see many young lives ruined around us by what is known here as the EMI culture. (Equated Monthly Installments)Plus aggressive marketing of credit cards have even two income young families struggling to keep up and resulting in serious health and marital problems.

I think that you will like this article. http://www.nytimes.com/2008/09/23/opinion/23kashyap.html?_r=1&th&emc=th&oref=slogin

By: teeni

teeni — Tue, 23 Sep 2008 14:35:35 +0000

I’m with you on that 100% and I know that my family’s income cannot afford to take this kind of hit or we too will be in dire straights through no fault of our own.

By: chris

chris — Tue, 23 Sep 2008 12:58:11 +0000

$700 Billion bail out! ’nuff said!

By: Vered - MomGrind

Vered - MomGrind — Tue, 23 Sep 2008 04:54:07 +0000

I’m upset too.