Taxpayers Angry About Bailing Out Reckless Lenders And Borrowers.

Finally, there are people doing something about this ridiculous mortgage crisis and bailout plan that I have discussed before. From CNN:

“We are both working professionals who would have liked to buy,” said Matthew Haas, a community development organizer who moved to Los Angeles with his wife in 2003. They opted not to pay bubble prices, and are still renting despite ample income. “Now we have hit [the alternative minimum tax] and are finding out our tax dollars are going to bail out others.” “Where is value, morally, as a country?” he said. “Is it taking taxpayer money and applying it to people who should never have bought, people who were flippers?”

My sentiments exactly – We did not even try to buy in this market because we could not afford a regular mortgage. Why should the responsible ones have to bail out the irresponsible ones?

The website Angryrenter.com, launched just last week, has a vitiation demanding that Congress not pass any bailout programs that reward risky borrowing and lending. To wit: “Let the free market sort it out!” The petition is gathering 40 to 50 signatures per hour, according to spokesman Adam Brandon, who adds that the site is already getting 15,000 visitors a day. “A third of the American public rents,” Brandon pointed out. “They’re saying ‘I’ve been saving for a mortgage for years. I could have jumped in on a subprime loan too. Now I’m going to have to pay for a government bailout.

Read the entire article over at CNN, check out the external sites listed there with the petitions (if you dare!) and let me know your thoughts on this in the comments!

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Comments (5)

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  1. chris says:

    I think the whole thing is absurd. If you are that big of an idiot to sign up for a subprime/interest only/adjustable rate mortgage, AND you state you didn’t understand what you were getting into when you signed the papers, you deserve what you get. Seriously, why should these people be “saved” because they rushed into something and didn’t take the time to read the fine print???? Or worse – didn’t care what they were getting into.

    If they do this, I think then that the government should reward those of us who are paying off our mortgage – or have paid off the mortgage recently. Yeah, right. It is just as absurd.

    It seems the way of the future – the idiots and losers get rewarded and the hardworking “fools” get the shaft.

  2. FFB says:

    We haven’t bought a house because we aren’t comfortable that we can handle the costs yet. But that’s not what people are learning when the gov’t bails out these loans. They learn that it’s ok to max your credit since you will get bailed out later on. There’s a lot of people, I’m sure, who got bamboozled but many more who just had big eyes and bought too much house. When borrowers get bailed out it just makes it that much tougher for me to buy since the housing prices don’t equalize as much as they should.

  3. K says:

    This is like passing a football player b/c even though he failed that math test, he is needed on the field. It goes against basic responsibility. I’m not going to be allowed to try and buy a $3000 HD wide screen TV with a $20 bill then ask everyone else in the store to take up the slack. They have their own purchases to make or not make as they see fit.

    I bought a house and have a mortgage. I’m no genius, but when looking at options and the subject of an ARM came up, my first question was, “So, what happens if the rates go up?” I will say it was a bit of a shock when the property tax increased and my payments went up, but my first thought was – “ok, guess I need to suck it up and stash some extra savings if that goes up every year.”

    Buying a house is a commitment. It isn’t easy and there are surprises, but basic personal responsibility needs to be a factor. It sucks that people weren’t given full disclosure of what was in store for their future, but people have ugly situations handed to them every day. Just handing them a wad of cash isn’t going to fix the problem.

  4. SmileyGirl says:

    Right on! We bought a house right before this big upsurge BUT we only bought a house we could truly afford. Why is it our responsiblity to bail out those people who have overextended themselves and decided they need help. If the buyer is not a responsible consumer there are lessons to be learned. Bailing them out does not teach them anything – except go ahead and make these big mistakes again….it’s okay – the government will help you out of it. That’s when we as a nation are in real trouble because of the dependents we will be creating! I feel sorry for the people that are in trouble because of genuine mistakes but so many of those in trouble are simply those that decided to get in way over their heads and then cry ‘Uncle.’ And it’s those type that will never learn and will always demand help. Stay clear and help the nation as a whole by helping with gas prices and things that effect everyone.

  5. STONZFAN says:

    I am not buying it that people were tricked into these homes.A few,ok.The vast,vast majority were white collar,lexus driving people sitting in starbucks,thinking they were going to FLIP their way through life. Donald Trump clones.I reason this because these homes were 4-5-6 hundred thousand and up dollar homes.Your average blue collar worker(40-50k)could not touch these homes EVEN WITH LOW ADJUSTABLES!How did my wife and I do it?We purchased a 2700sf fixer upper 10 years ago(40000$ 5.2 fixed).Carrying old drywall through the snow to the dumpster etc.BlOOD,SWEAT,and TEARS.Our backs are not in the best shape,but it”s a good hurt.The home is now worth 300,000 with 4 years left to pay.My wife and I just smile thinking about the holier than thou sitting in their 60-70 thou lexus,that now doubles as a 30 sf. condo.