Lucky’s arguments sound very reasonable.However,many upside down are not first time buyer’s nor were they under serious duress.This upside down business goes through all levels of housing. There was an element of a binge to it. Yes the fools were baited.That’s no excuse and especially not an excuse to soften the landing for the one’s who baited them.
In my particpation as a pigg I have never felt compelled to rag on FB’s as has often been the norm. However, the whole idea of mortgage write downs is really creepy.Seems like some really f’d up priorities have gotten a hold.
I don’t care what write downs do to house prices. I can visualize the guy, my neighbor, with the biggest out of control appetites getting his over sized over blinged life,mostly aquired on mortgages, and a write down to cope with it.Maybe we even make sure he has “JOB” in the building industry(See NAHB lobby). It makes me feel ill. Not because they are getting away with something,I like the guy, it’s because that money lost could have improved education, fed someone who is starving, or inoculated someone against some controllable disease…maybe bought a day of peace.
What are we going to do, institutionalize consumption and debt forever and make legitmate caring obsolete?
How many handouts are these otherwise fine and “wealthy” people going need in the future if we are going to pour national wealth into their private shelter now? I always figure if I get into serious trouble I’ll have to liquidate my house.You weren’t allowed many social benefits if you had assets. Fair enough. Now we are pouring money into houses and banks that are losing on these same relatively luxurious houses? Didn’t some really famous and influential people grow up in log cabins?
What doesn’t kill us makes us stronger. Instead of subsidized write downs, banks can eat it. People can go rent or go home to mom and dad or move in with friends. Then we can think about things. Yeah, my house value will go down,maybe I’ll lose it, so what.Pretty clearly these “solutions” are superfical and of dubious quality and duration.
