It's a weird facet of American society, which better rewards those who try to live the American dream and fail miserably than those who live within their means. In the end, those left carrying a fat debt, bad credit scores and lingering regrets are as much a mirror of our system as all the happy homeowners who make their mortgage payments month after month.
Friday, May 4, 2007
Bailout for Borrowers
New York Senator Chuck Schumer is urging Congress to spend $300 million of taxpayer money on counseling and outreach for homeowners facing foreclosure. That doesn't sit right with me as this action circumvents the notion of personal responsibility. Nobody forced these borrowers or lenders to engage in activities leading to this market crash. New Century just announced the termination of 2,000 employees. There has to be consequences in order to exact change. Carol Lloyd of the San Francisco chronicle sums it up succinctly in a recent column on the notion of a short sale where debt forgiveness is a "win-win" situation.
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1 comment:
I feel for the first time homebuyers, since they may not have realized what they were getting into....they could probably use some help.
However you are right, any form of bailout sends the wrong message to those who were being fiscally smart.
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