The Government To The Rescue

The Sacramento Bee is reporting that Sen Charles Schumer from New York wants to bail out homeowners whose homes are in foreclosure because it's not their fault.

I don't get this mentality. The ulitimat responsibility for personal finances rests with the borrower. Unless the broker flat-out lies to the borrower, I don't believe that anyone can be held responsible but the person who signs the papers and says, "Yes I understand that I have to pay this money back in this fashion." To claim "not fair" when your adjustable rate mortgage climbs up, after you signed the papers saying you knew it was going to do that, is amazing. These people should not have been given loans in the first place.

Why the government should bail people out who had no business borrowing in the first place is beyond me. How bout Schumer bail me out? I have paid my mortgage payments on time, and have outstanding credit. Why should the people who default get a reward?

I think that way to many people think only in terms of whether or not they can make the monthly payment on whatever it is they are buying. It used to be people were concerned with what the bottom line price was (cost+interest). Now, they don't care about that. Only if they can make the payment. Lenders structured loans to fit that way of thinking by making payments really really low for the first few years, and authorized unprecedented amounts of sub-prime loans (people with bad credit got money). Now, as interest rates climb, like they new it would when they signed the papers, the people with bad credit aren't paying. WHAT A SUPRISE!

And Schumer wants to bail them out. WHAT A SUPRISE!