Robert Samuelson is a very smart man, and probably one of the better editorial writers on the scene today. His column this morning echoes something I've been pounding home here lately--that America's obsession with home ownership is not a great thing for our economy. Sure, owning a home is a great thing and generally speaking, a good investment. But not everyone should own a home, and not everyone should own as much home as they do. But further to the point, we should never forget that most of the people who are defaulting on their mortgages NEVER OWNED THEIR HOMES--THE LIEN HOLDER DID! The suggestion that someone "owned a home" who made 12 of 360 payments (or 24, 0r 36....) is loony.
We don't have a housing crisis in this country. A housing crisis would occur if there weren't enough housing. We've got plenty. What is in short supply is common sense and the strength of character to let people who have made unwise decisions suffer the consequences.
Wednesday, July 30, 2008
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4 comments:
And the choir stands in unison, looks to the mighty Wahoo and say, AMEN!
"Just remember this, Mr. Potter, that this rabble you're talking about... they do most of the working and paying and living and dying in this community. Well, is it too much to have them work and pay and live and die in a couple of decent rooms and a bath?"
....and Mr. Potter's reply?
"Sentimental Hogwash..."
"What a Wonderful Life Redux"
"Just remember this, Mr. Potter, that this rabble you're talking about... they do most of the working and borrowing and living above their means in this community. Well, is it too much to have them work and live in a 4800 square foot starter home with a designer kitchen and granite countertops? Not to mention a home theater, full walk-out basement, 3 car garage, and a master bath with jacuzzi and high tech shower system?"
....and Mr. Potter's reply?
"They sound like just the folks eligible for our interest only, no money down, adjustable rate, no income verification mortgage."
Dan...low blow, using my favorite movie against me! That said, I have been thinking lately about whether I was being Potteresque in my thinking. But then, I thought how few of the customers/home"buyers" were like Mr. Martini ("no more I live like pig in Potters field"), looking for a few decent rooms and a bath...
Anon laid it out perfectly. We're talking apples and oranges.
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