Comments on: Some Foreclosures Cannot Be Helped, Says Treasury Dept. I Agree, And Nor Should They Be.

By: Shaun Connell

Shaun Connell — Sun, 12 Oct 2008 07:05:08 +0000

I couldn’t agree more. Well said. It’s infuriating to see the government step in and make sure someone else gets guaranteed what I have to work for. It’s not the equal protection of the law, and it’s just causing a disaster in inflation down the road. =/

By: My Feelings on the Mortgage Bail-Outs | artofthecoupon.com

My Feelings on the Mortgage Bail-Outs | artofthecoupon.com — Tue, 29 Jul 2008 17:33:35 +0000

[...] (and political) world lately is the government bailouts surrounding the mortgage crisis. In this article at My Two Dollars, the writer expressed a lot of my sentiments. While I do feel very [...]

By: Dawn

Dawn — Mon, 14 Jul 2008 13:00:49 +0000

While I agree that people who made negligent financial decisions shouldn’t be bailed out by the government, I think it goes unsaid that the government is really bailing out the banking system more than the individual homeowners. Individual homeowners aren’t the real problem; the real problem would be if the banks actually had to take back all those houses.

Also, remember that it takes two to tango. The borrowers couldn’t have made those negligent financial choices had the lenders not been willing to sign off on them (not to mention that the lenders came up with the interest only, negative amortization and other risky mortgage products).

No one involved in those transactions is blameless.

By: Melissa

Melissa — Mon, 14 Jul 2008 12:16:58 +0000

I completely agree with you here, and I’m surprised at how many people I talk to who wouldn’t agree. Everyone (including the media) seems to act like getting bailed out is their god-given right as an American. I also liked your truck/expensive gas metaphor. The one I use is: I have 60k in student loans from getting my B.A. and now make 20k a year. But even though my degree is now worth less than what I paid for it, is anyone going to bail me out? No!
I can only hope the government doesn’t end up bailing out these people and putting the burden on the rest of us who weren’t stupid. As frugal as I am, even I might consider it a waste of time, if I can do stupid financial things instead and get rescued all the time for them…

By: LendingLeaves

LendingLeaves — Thu, 10 Jul 2008 14:08:56 +0000

Should All Victims of Foreclosure Be Helped?…

Right now, there is a lot of effort being put into helping those who are "victims" of foreclosure. But are they all victims?…

By: The Baglady

The Baglady — Thu, 10 Jul 2008 05:44:48 +0000

Unfortunately, it is an election year, and the politicians want to seem like they are addressing the issue. However, they’re going about it in a completely idiotic manner.

By: david

david — Thu, 10 Jul 2008 04:03:49 +0000

Exactly PT, exactly. Thanks everyone for your support and comments!

By: PT

PT — Thu, 10 Jul 2008 03:45:55 +0000

Great opinion piece, David. I couldn’t agree more. We did it the right way and I’m proud of that. I’m not sorry for these folks one bit. They should go rent like I did for 10 years, while saving up.

By: Adam

Adam — Thu, 10 Jul 2008 02:47:32 +0000

This also gives rise to what economists call ‘moral hazard’ – in essense, people change their behaviour because they have a reasonable expectation that the government will support them if something doesn’t work out. That encourages people to take on more and more risky loans, because they believe that the (negative) consequences will be born by the taxpayer, not themselves!

By: Stacey

Stacey — Wed, 09 Jul 2008 18:49:25 +0000

Thanks for the brutal honesty. I am also frustrated by the number of people expecting a handout from the government. While I know that many people are suffering due to the economy and unemployment, I also know several people in foreclosure due to their own bad judgement. How is it fair that they receive preferential treatment, when those of us fighting to eliminate debt, live a more frugal lifestyle and save for the future are ignored?

Just as tapping into an IRA is allowed under extenuating circumstances (admittance to a nursing home, disability, unemployment, etc.), government assistance should also be based on true need. The worst happens to good people, but we can’t and shouldn’t expect Big Brother to help everyone.