But oh no. that won’t happen. That would be too “elitist”. That would make rich people richer and poor people poorer. That wouldn’t be “fair”. So we should give out good money to people with bad credit, since people with good credit can fend for themselves. By golly, everyone should be entitled to driving a new car. Everyone deserves to “own” a home..And when people get behind in payments…That’s ok. We’ll just re-modify the contracts…Because we can…Because if you can earn/save a dollar, you shouldn’t need help from the government. But if you can’t manage/save a dollar, we (the government) will give you one anyway…So that it’s “fair”….
Sincerely,
The Government of the new United Socialist of America.[/quote]
I see it differently. Right now, if an FB is underwater on their house, and they owe tons of money on credit cards, etc., their net worth is well into negative territory. By foreclosing on them and possibly allowing/encouraging them to declare BK, we would have increased their net worth by hundreds of thousands of dollars, literally within a few months.
One condition: we must not bail their creditors out. We must do everything possible to discourage loose consumer lending in the future, IMHO. That is what gets so many people into trouble, and it pushes up prices for *everyone,* including those who try to live debt-free.
Too many people don’t seem to understand that the best thing that can happen to hopeless debtors is foreclosure and bankruptcy. It would pave the way to a healthier economy going forward. As it stands, after all the bailouts, etc., we have simply added even more debt to our system, which is the exact opposite of what it will take to fix our economy.
