The past eight years of affluenza is continuing to take its toll.
The post du jour, courtesy of patrick.net:
Foreclosure Stories Ignore Foolish Greed Of Borrowers
Re: [MSNBC video]
Hi Chris, I have to say that I think your profile on forclosures was completely one sided. Almost all of the piece was about the sad reality of people being evicted from ‘their’ homes. Hardly any time was spent on how they got into the problem in the first place. The Alverez family in Florida had their mortgage payment double, however these people obviously had taken out an exotic loan in the hopes that housing prices would continue to rise and interest rates would continue to stay at historic low levels forever so they could refinance. They should have never have put themselves in that situation. A school principal said she did not read the contract when she refinanced her mortgage. I hope she did not do the same when she was managing the contracts for her school. As an educator she should have been saving money for her daughters school from the time her girl was born, however that would take sacrifice and how much easier was it for her to use the house atm.
For your next piece you should spend some time talking to the real victims of this crisis, the responsible people who did not take out mortgages that they could not afford. Because of the absurdity in the housing market many familys with good incomes were priced out of the market because they were not willing to take exotic mortgages. These were the people that realized that by taking an adjustable rate mortgage, option arm, or interest only loan there was a possibility that things could go underwater very quickly just like it did. Many of these people ended up renting, loosing the tax breaks that come with home ownership, and maybe saving money which due to the bail outs, is worth less and less each day. These people responsible people are the true victims, not the people who bought houses they could not afford with loans they did not understand. I hope you spend some time discussing the reasons why these people put themselves in such bad situations in the first place.. I think that you will find that the main motivation was either greed, trying to keep up with the Jonses, or choosing to spend their money on other things.
Be sure to watch the video. “Read” between the lines. I’m sorry if I sound a bit harsh, but these folks- claiming to not know the terms of their loan, and are now soured that their bet on perpetual home appreciation was wrong- are prevaricating. Having bet “the house,” the only tactic left to them is playing the sympathy card (the joker?), which only buys a little time.
The mainstream media will always be there to pimp them out as victims (who nevertheless could have avoided this entire fiasco if they had done five minutes worth of basic math)- but you and I know better.
Common sense tells you that if you gamble, most of the time you will lose.