Wednesday, March 12, 2008

On Bailing Out Mortgages

Our Congress-critters, in their omnipresent quest to relieve us of the responsibilities of our actions and buy our everlasting loyal servitude, want to relieve homeowners of the results of buying more home than they can afford. But what of the rest of us? I bought only as much as I could afford. And I paid for it responsibly and ten years ahead of time. Congress hates responsibility. These poor unfortunates bought their homes during the presidencies of Bill Clinton and George W. Bush when times were good and interest was low. They have had it easy.
I bought my home just after the reign of Jimmy Carter. Interest rates had just dropped from the 24% under Jimmy to 14.5% during the first year of Ronald Reagan. The press was everywhere decrying how Reagan was hurting poor people, but I finally bought a house after thinking through the Carter years that I would never ever be able to afford one. When interest came down to 10%, I refinanced. And again when interest dropped to 7% I did it again -- adding $5000 to my principal each time.
So I don't want to hear how someone is in financial trouble when interest rates climbed from 4.5% to 6.75%. And I sure as Hell do not want to hear that Congress wants to bail them out. If they can't pull off a mortgage in this day and age, maybe the don't deserve to own a house.

And while I have your ear(or rather, your eye) with the fall of the price of the dollar and its corollary the rise of the price of oil (and most everything else) and the imminent presidency of an inexperienced beginner, the stage is set for a repeat of the Carter years. Hang on tight!

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