Don’t misunderstand what I’m saying. I don’t necessarily blame the FBs per se. However, I’m torn on this issue and I’ll explain why. I fully believe that most people do not understand the Time Value of Money principles. I’m fortunated that I was formally trained on it due to my backgrounding in accounting and finance. However, you don’t have to understand TMV thoroughly, to realize that if you are only paying for the interest on a loan or that your loan is equivalent to 10x your annual income, that you might have a problem handling the payments. The only reason that people were taking those risks was speculation…whether they realized it or not. Speculation that the home prices would continue to increase indefinitely. It’s difficult for me to have a sympathy for the typical FB who’s making probably half the HHI that my wife and I do, but runs out and gets an escalade or MB with his Heloc money because he fully expects that I’m going to buy his house at price sufficient to cover those expenditures.
Sorry…not going to do it. I am the CEO of my family and will not do that nor will I have regret or sorrow over that position. Empathy for those who truly duped, sure. Sympathy in the form of my tax dollars? No F*cking Way. There was no sympathy for me when I was in my late twenties and watched what I had built in my 401K get wiped out in the tech bubble…no bail out for me in that case.
I will not fund the retirement of some Californian who has been here longer than me and thinks they are entitled to it. Not going to do it.
