Robbing Marvin to Pay Horace
But I’m thoroughly confused at this point. Perhaps someone out there can help me out.
Didn’t we suffer the economic Tsunami we did in large measure because the government (meaning “those folks we sent to Washington because they’d make the tough decisions for us that we wouldn’t”)—in the interest of giving the less fortunate a break—put pressure on the lending institutions to lend money to those folks who couldn’t afford homes that weren’t worth what they were borrowing on them and were obligating themselves to make payments they could barely afford even before the rates they accepted were adjusted to make them totally unaffordable? Or did I miss something? [Yes, I know it’s a run-on sentence! I did it for effect.]
And, in the interest of turning this country back around economically, are we not putting pressure on the lending institutions to do it again—only with us taxpayers helping those lenders recover much of the money they lose by swallowing the upside-down collateral?
I just read in the newspaper where our erstwhile Fed Chairman was lamenting the fact that the problems are far from over. If I read it right, it was because there has been an alarming increase in the number of failures and foreclosures by those who had been able to work out a deal with their banks to amend their loans but who couldn’t make the payments on the revised mortgages. Duh!
If they couldn’t afford it to begin with, and if the lenders aren’t holding a higher standard to those to whom they lend than they did before, aren’t we just postponing the inevitable and increasing the size of the impact?
If you can’t afford to own a home, then maybe you should rent one from someone who can! My bad for being heartless?