Failing to comprehend economics
If you buy high and the market falls you are stuck with an asset for which you may not earn a return or on which you may lose.
All of you people who got carried away buying houses that you could not afford are now “underwater” due to your fault; you will take a hit. It should not be the burden of everyone else to pay for your mistake.
You can still live the good life. You will have to rent a place. You may have to declare bankruptcy and start anew.
One calamity can lead to others, no doubt. Government has a responsibility to provide assistance to help you move forward after the calamity takes effect and not before.
So, I am not in favor of bailing you out until you are way under and have learned from your mistakes.
Obama is making another one now called premature assistance.
“EXECUTIVE BRANCH - POLITICS
White House to Announce Major Home Lending Revamp
Published October 24, 2011
The Wall Street Journal
The plan is the latest White House effort to deal with one of the most critical impediments to economic recovery -- a stagnant housing market caused in part by a surfeit of homeowners who are unable to refinance.
The overhaul will, among other things, let borrowers refinance regardless of how far their homes have fallen in value, eliminating previous limits.
That could open up refinancing to legions of borrowers in Nevada, Arizona, Florida, California and elsewhere who pay high interest rates and are deeply "underwater," owing more than their houses are worth.
U.S. President Barack Obama was expected to tout the program in Las Vegas on Monday.”