[quote=briansd1]
I made a correct prediction of the living-for-free trend that we now see. That maybe unsavory behavior, in your estimation, but it’s a fact that is becoming more common. Why not recognize it for that it is? Just like you may not like the bailouts; but they are a fact of life and you’re taking advantage of them through your house-flipping business.[/quote]
As far as I’m concerned, I’m more upset w/the government than the people walking. As soon as the government mentioned bailout, they were setting up this situation. It was a given that anyone upside-down would walk.
Is all of this BS? Sure. Going all the way back to when banks were giving away money on liar loans and to dead people. I had the common sense to not participate in that scenario and it certainly wasn’t b/c of lack of pressure.
The reality for most people is that they fell for the bait, bought the house they couldn’t afford thinking they were going to flip and make money b/c housing prices were going to go to infinity and beyond. Just like when they became daytraders overnight until the tech bubble crashed.
Now these people are upside-down and the government is basically saying we’re going to cut you some breaks. Once again, those people are going for it. I don’t blame them as much as I blame the government.
So it’s not that I condemn people for walking. I go to the source of this, the government.
I understand the financial decisions and contractual obligations. Morally, I’m not praising people for walking, nor living for free. I think of it as collateral undamage. As a consequence of them not paying their mortgage, they have “extra” income to spend. All these people who are not paying, and there’s a whole lot of them, are going out to dinners and shopping, etc. Consuming. Which pretty much is a major source that drives our economy.
