Not Everyone Defaulting On Their Home Mortgage Is A Victim

Ken McCracken • August 24, 2007

Memo to the media: Everyone who is defaulting on a home mortgage is not necessarily a victim.
I feel sorry for anyone in that situation. Losing a home is an awful thing. Some were undoubtedly pressured into buying by unscrupulous lenders. Too many greedy players on Wall Street got away with making shaky loans for too long. They sliced and diced mortgage debt into increasingly exotic paper and lost sight of the risks involved, figuring the Fed would bail them out if things got out of hand.

Of course, the way to protect against that sort of behavior in the future is for the government to deny everyone, from borrowers to lenders, any bailouts at all. They should all reap the consequences of their own bad decisions.
That’s not going to happen, though, because politicians are in charge. All politicians have constituencies, and they’re all going to pander to those constituencies by making them out to be victims and then working to get them a government payout.

Tags: Cultural Marxism, Domestic Issues, Nanny State, Politics

http://www.indymedia.org/en/index.shtml Angry Vertebrate

The free enterprise system is the natural order of things… — Robert108

Says who? I hope you have some evidence to back that up.
http://www.indymedia.org/en/index.shtml Angry Vertebrate

Who would have thought that deregulated financial markets would be unable to regulate themselves? Me! Looks like ol’ uncle Milty was wrong yet again.

This reminds me of a quote I saw the other day:

Why will capitalism always survive? Because socialism will always be used to save it. — Ralph Nader’s Dad
robert108

Something that I think credit card companies have trained a lot of Americans to do.

Yes, in those training centers where the people are forced to attend at gunpoint. /sarcasm
GregB999

I watched a news article on this several months back down here in the Twin Cities. A guy was going to a house to repossess the house. It was a relatively expensive house, something like $350-400,000 and parked out front was a luxury car and a Hummer H2. Extended themselves too far without thinking of the long term consequences. Something that I think credit card companies have trained a lot of Americans to do.
http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

Where’s my bailout for the net worth I lost back in 2000 to March of 2003, caused by the Clinton/Gore tax increases, tech bubble and algore’s Y2K fiasco?
http://SayAnythingBlog.com The_Whistler_ofnd

This is about bailing out the mortgage lenders who give money to the politicians.
robert108

The free enterprise system is the natural order of things, when people are free to make free choices in a market where they own the means of production and the capital, and where they are free to do what makes sense for them.
Socialism always fails because it’s totalitarian, and the human spirit yearns to be free.

As far as Ralph Nader’s dad is concerned, the apple doesn’t fall very far from the tree.
GregB999

I’m going to call you on that one.

OK, I deserve that one. The credit card companies are careful about that, but friends really push the college students on that. Probably because those self-same friends are already having credit card problems and want to go out and continue to have fun…

I’ve also heard young people talking in restaurants about the shock of actually having to pay a credit card bill.

And I do remember friends getting credit card offers in the early ’90s that talked about all the cash they could get in nice large print and kept the fine print on the back, out of the way.
GregB999

Yes, in those training centers where the people are forced to attend at gunpoint. /sarcasm

They’re called homes and universities/colleges. Students are often given credit cards and it’s often implied that it’s free money. No one, from parents on down, seems to teach how to budget anymore. And it’s not something they seem to learn by the time they’re out looking to buy a house.
robert108

Greg: T’was truly said: “A fool and his money are soon parted.” The remedy for foolishness is life experience. You expect too much from the young, and blaming others for their errors doesn’t help.
http://SayAnythingBlog.com The_Whistler_ofnd

it’s often implied that it’s free money.

I’m going to call you on that one.
http://www.bikebubba.blogspot.com/ Robert Perry

Well, guessing that the Fed is going to bail you out has historically been good business, and that fact had to have weighed on the minds of those underwriting those loans. It’s not like the Fed is going to allow deflation or anything when loans go bad and contract the money supply, after all.

SayAnythingBlog.com

Not Everyone Defaulting On Their Home Mortgage Is A Victim

Create a SAB Readerblog

Recent Comments