Neal Boortz whines about the mortgage bailout
Neal ... you are totally missing who is really being bailed out here.
The reason a bailout is needed is not because we feel sorry for all of the home owners that made bad decisions and now can't pay their mortgage bill. If it were just the consumers that were effected, there would be no bailout.
Since you don't get it .... the reason we are doing a mortgage bailout is to save the other people that were impacted that we can't let fail: namely the banks that offered the mortgages, the investors that loaned the monies to the banks, and the companies that bought or secured what is now bad debt. These are the people that are really being bailed out.
The primary blame for this mess lies with Congress. They created a regulatory environment that allowed this problem to happen in the first place. The secondary blame lies with the banks and lenders .... "Hmmm, let's see ... your credit record is spotty at best. Wait, I know what we can do. We'll lend you at least 100% of the value of the house and consolidate all of your other outstanding debts into your monthly house payment as well. Oh and to save you even more money, we can do this with a variable rate loan". Duh!!!!
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My blame falls first at the government. They brought "big mortgage" in front of the congress and reamed them out for not making loans to poor people. Well, duh, people are poor because they are irresponsible (and usually stupid). Once they were forced via threat to go there, it was just a matter of time before it fell apart.
Even worse, now the cure will be back to strict numbers, 25% of gross for monthly payment, 33% of gross for all credit bills, etc. That will kill loans for small business owners or self employed like myself. If I want a big income, I have to turn down legal tax advantages to do so. If I want to keep my taxes low, I lose the ability to finance.
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