Political Rant

I just have to say something about the mortgage crisis. As I hope most of you know, Congress just passed a law about helping homeowners avoid foreclosure and a plan to "bail out" Fannie May and Freddie Mac "if needed." Now, this post is going to sound cruel and heartless, but I have married an economist, and I feel very strongly about personal responsibility. I really do feel for some of these people. Some really thought they could afford the house and just got the wrong mortgage, or were duped into refinancing on a worse plan. Now, they're losing their homes.

Yet, there are many (and I've heard their stories on NPR and elsewhere) that KNEW they couldn't afford their house but bought it anyway. They say that it's the bank's fault for giving them the loan. Okay, if you know you can't afford a house, DON'T BUY IT! Many say that it was their dream home. My dream home (except for the small yard) is down the street from me, but I know without a doubt that I can't afford it. A bank may give me a loan for it, but I KNOW I can't make the payments. So, we're not going to buy it. These people made a choice. Now they've got to live with those consequences. They aren't homeless; they just have to downgrade.

Many are blaming the banks and loaning institutions for even offering these loans in the first place. This is where I really stand firm. That was a market decision. They were willing to take the risk of lending money to people who probably couldn't pay them back. The banks don't deserve a "bail out." The market will correct itself if left alone. Yes, people will lose their houses. Yes, banks and lending institutions will fail. But it will come around and get better. Plus, the housing bubble was just too big. And, having the government step in won't really solve anything. It will just add to the deficit (unless taxes are raised) and people thinking that if they are in trouble, the government is responsible to save them. I think that idea is already too prevalent in our society. Many feel that they cannot help themselves and that government is responsible for them. But that's a completely different post.

Now, people like me and a friend of mine will be able to afford a house soon. So, maybe I just have a selfish interest in all this. But don't we always have some kind of selfish interest in all our opinions?