I honestly haven't taken the time to read this story carefully enough to discern the details of President Obama's latest step on the Road to Serfdom. I only got as far as the story of Mr. Greg Chase, 53, of Fairfax, Va. At the height of the boom, Mr. Chase purchased a house (that's right--a house. That's what people buy. Not "a home". A home is where YOU LIVE, whether owned, rented, or given to you. Calling houses "homes" is a marketing trick) in Fairfax for $475K with $25K down. He is a Fairfax County government employee. He purchased the house with a 30 year fixed rate mortgage.
Mr. Chase's wife recently lost her job. Real-estate values have "tumbled" in his neighborhood, and now Chase "...owes more than the house is worth." Apparently the $2800 monthly mortgage payment (my calculation) is more than his Faifax Government employee salary can pay, so he's had to dip into his 401K to make up the difference.
A couple of things....I wish the article had stated what "kind" of employee Mr. Chase is, and what his approximate salary was. He says he "qualified" for the loan, but then again, he had a pulse--so there's your qualification. Exactly why is the value of the house an issue? He doesn't want to "lose" his house, so he clearly isn't interested in moving...oh--I see, he'd like to borrow against his equity in order to....pay his mortgage. Now there's a sound plan, house as ATM....
Mr. Chases's wife is briefly mentioned as having lost her job, which is truly unfortunate, especially when they qualified for the $450K mortgage on two salaries. She does not then come up again in the story. What kind of work is she looking for? Better yet, what kind of work is she not looking for? What sort of work is she passing up, even though they seem to be headed for financial shoals?
This story is yet again another example of what passes for news and reporting on this financial "crisis". No analysis, no real determination of the culpability of the "victim", just an emotional plea and the sense that government should "do" something about it.
Wednesday, February 18, 2009
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8 comments:
"Government employee" can't even manage his own finances yet is probably in charge of some component of the Obama's Newer World Order.
How about an $8000 credit for home buyers who put 20% down and kept their monthly payments at a level less than 33% of their income, just like we were advised back in the day? So that we'd have the funds to invest in our own retirements and pay for our kid's college educations without the "help" of the government.
Whens does we gets ours?
Because unlike the Democrats, Republicans, bankers, and borrowers in danger of foreclosure; I did nothing to cause this cluster frock and resent having to pay for it.
OK, a quick Google Search of Mr. Greg Chase found this: his last job was, get this, "Senior Staff Coordinator (Planner III) at Fairfax County Department of Planning and Zoning."
Please shoot me.
No, how about we offer a tax break of some sort to people who RENT, to reintroduce that crazy virtue of renting until you can afford to buy.
Okay, you want to have a real nanny state? Want to build infrastructure? Want to help people keep their homes? Want to quit punishing those who act responsibly? (Okay, I know the new national management has little interest in that but I thought I might sneak it in much as a "little, tiny, yes porky, amendment"). So here's my proposal: Federal government buy up the mortagages in danger of default. Every last one of 'em. Then put those who want that help into forced labor, building roads, cleaning up inner cities, refurbishing schools, filling teaching voids, etc...if they miss one day of work without permission. House gone. Forever. You are homeless and will be fed by the others who are trying to keep their homes. And since we won't be drilling any time soon in the ANWAR,perhaps this Administration can make their own Siberian gulag for those who resist.
I like Tom's point above! I feel depressed that I've been a responsible citizen all these years. Why do I have to pay for other people's studpidity and greed?
I wish I could let go in life like so many other Americans and just rely on Uncle Sam as a backstop. Will the new expanded welfare policies provide country club memberships for unemployed professionals?
What's crazy is how we're fast approaching a Socialist system (some may argue accurately that it has already arrived). In some States, it's possible to have an effective tax rate similar to a socialist country. The only difference is that in the Socialist country, you do not have to pay for your own college education and healthcare. While Obama is moving toward that for healthcare, it will come from the pockets of corporations and no the super high personal incomae tax rate. We're approaching socialist taxation without the benefits to the people carrying most of the load of the government's tax revenue. The only ones who benefit are the ones who can let go of responsibility and accountability and pay little to no taxes.
Where can I move where self-responsibility still rules the day (and law)?
An answer to Pete: Nowhere. We were it up until just a little bit ago.
Heard a good point raised on C-SPAN today as I was stuck on the road with lunatic District drivers. It speaks to one of the points raised above. Other than continuing to maintain the moral high ground, what incentive remains for people who have busted their humps to pay their mortgages (even some with ARMs and the like) for fear of the shame, social ignominy, and bad credit? Especially, when they see ignorance and bad judgment rewarded time and again?
Maybe everyone who didn't employ common sense gets a big red D on one's license plate? D for debtor, dunce, dumbass, dips*&t, etc.
Debtors' Prisons. Can we bring those back?
What happened to shame? This used to be a powerful tool. I guess this is too mean though. Every time that I hear about someone walking away from their home loans, I want to vomit. We should officially retire the word, because it holds no meaning anymore.
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