Well-To-Do Sellers ‘On A Short Leash’
A housing bubble report from the Milwakee Sentinel. “Home foreclosures nationwide have surged this year, amid evidence that many well-to-do buyers borrowed beyond their means. What’s startling isn’t just the higher numbers, but who they represent, the affluent, not just the down and out.”
“‘These are the ones with a bigger ability to get money, the executives, businessmen and professionals, buying more than they can possibly afford,’ said Brad Geisen, of Foreclosure.com. ‘They were banking on price appreciation continuing to go up fast, and pulling their money out in time.’”
“It didn’t work. ‘With interest rates almost double what they were two years ago, their payments are up, and they’re finding it’s not as easy to sell,’ Geisen said. ‘Some leveraged the equity in their primary residence, to the max, to buy a second home.’”
“‘I’m certainly aware of the spike,’ said attorney Peter J. Zwiefelhofer, who runs Milwaukee Bankruptcy Center. ‘A lot of people overpaid for their house in this boom and a lot of properties were appraised at unrealistically high prices, mostly by subprime lenders looking to close a deal. Plus, there’s a lot of unsophisticated people out there who look at a mortgage as just a payment and say, ‘Oh, I can swing that.’ But they can’t.’”
“Until this year, most financially strapped homeowners could count on a booming housing market to provide them a quick sale. But that’s over.”
“‘One thing I’ve learned: The more expensive the house, the more difficult it is to unload,’ said Milwaukee bankruptcy attorney Bruce A. Lanser. ‘In a case where the house is upwards of $400,000 to $600,000, I used to think, ‘Oh, great house.’ But those houses are not selling that well anymore.’”
“(Broker) Scott Heyerdahl in Hartland, said he sees no evidence of forced home sales in the heart of Waukesha County’s coveted Lake Country. ‘What I have seen that’s new is sellers with a short leash. They purchased other properties and it’s non-contingent’ on the sale of their existing residence, Heyerdahl said. ‘Those are the folks really on the edge of their seats these days.’”
“Mike Ruzicka, president of the Greater Milwaukee Association of Realtors, sees a cautionary tale in this uptick of hard-luck stories. ‘All these people who went to creative, risky financing were buying time, but it’s a house of cards,’ Ruzicka said. ‘Hopefully, everybody in these riskier adjustable loans will take a hard look at things and maybe refinance into a 30-year fixed rate mortgage before it’s too late.’”
Here’s the latest round up at my foreclosure blog:
In the suburbs of Dallas, Bridget Edwards comes home to uncertainty every day. She and her husband, James, are four months behind on their mortgage. The reason? ‘We have an adjustable-rate mortgage,’ she explains. ‘I really didn’t know it would change like this.’”
“‘The reason homeowners have been buying properties that are probably beyond their means, is that they haven’t been looking at what the house costs,’ says Rick Sharga, who maintains a database of foreclosed properties. ‘They’ve been looking at what the monthly payment was.’”
“That’s something the Edwardses admit, and now regret. ‘I am sad. I’m angry. I’m confused,’ says Bridget Edwards. ‘I love this house,’ James Edwards says.”
“Last year, Jolene Garcia was one of the 9.1 percent of San Antonio homebuyers, about 3,500 people, who chose an adjustable-rate mortgage. Garcia’s biggest problem, the one keeping her up at night, is a $3,000 property tax bill due in December. Her loan did not include escrow, the estimated property taxes paid monthly in most mortgages, and she didn’t realize it.”
“‘There was some fairly aggressive lending going on. Young people and immigrants who have no background for buying a home can get led down the merry path,’ said Jim Gaines, research economist at Texas A&M University. Today’s lending landscape reminds Federal Housing Administration commissioner Brian Montgomery of the 1930s, when high-risk and high-interest-rate lending was common.”
“‘The economy is better today,’ he said. ‘But now you are seeing these really exotic loans done on a wide scale. Some families were steered towards loans they shouldn’t have been.’”
The Memphis Daily News. “A total of 4,616 foreclosure sales occurred between May 2005 and April 2006, according to The Daily News. The number of properties foreclosed totaled 4,665 because, in some cases, multiple properties owned by one person were sold at the same time. Steve Lockwood, who is executive director of the Frayser Community Development Corp., has been keeping track of foreclosures in Frayser since he accepted the post three years ago.”
“‘It’s an epidemic,’ Lockwood said. ‘Shelby County has the highest HUD foreclosure rate in the country and Frayser has the highest foreclosure rate in Shelby County.”
“Valerie Smothers recently lost her Cordova home in foreclosure because she fell behind on her mortgage payments after her boss was late with her paycheck, she claims. In the beginning, her lender understood, but as a couple of weeks stretched into a couple of months, the mortgage company’s patience stretched thin. When she finally had things settled at work and went to the mortgage company, officials refused to accept the $1,900 she had. It wasn’t enough for her back payment.”
“‘They told me the adjustable rate had gone up,’ she said, meaning she would need more cash.”
“April 2006 foreclosures in Massachusetts were 44.35 percent higher than April 2005 and nearly 90 percent higher than April 2004 levels. April 2006 had 1,227 foreclosures started. That translates to more than 60 filings every business day in April.”
“Driven by rising interest rates and high levels of debt, foreclosures on homes in the eight-county Chicago metropolitan area are sky-rocketing, particularly in the region’s fastest-growing counties. The soaring rate of foreclosures is quickly transforming what has long been a seller’s market into a buyer’s market.”
“‘You have a situation now where you have these potential increases in foreclosures, and interest rates are going up, which will populate the market with more properties,’ Jeff Metcalf says. ‘The real estate market will be slowing the appreciation in prices. We’re moving toward a buyer’s market. In fact, we’re probably already there.’”
Ben, I talked today with one of the most successful realtors in Dallas, a name any local would instantly recognize.
She told me off the record that the market has softened considerably and things are not selling. This is nothing I did not know already but was surprised to hear from someone so high profile.
And Milwaukee is supposed to be one of the slow and steady appreciation markets that is used as a foil against the highly volatile CA markets.
I have read it in a bubble article but do not have any links.
Last night I posted a link on in Foreclosures..various stages on this sight.
To my surprise Indianapolis topped the nation with 1 - 69 households.
An amazing number for middle America, don’t you think?
Dallas then Atlanta then Memphis..see above. Cali not filling the top 20 so much.
Vegas 10th (1-140 households) and little ole “conservative country values”- Salt Lake UT tipping in @ 17th… OHi - polluted the top 25???
here is the link again:
http://www.realtytrac.com/news/press/pressRelease.asp?PressReleaseID=112
Wait until July, when the time to register kids for school passes.
Then the fit will really hit the shan for sellers.
Do you listen to Larry Elder?
Nope. Does he also think July will make sellers feel even more pain?
Repeat after me; “Seller, nobody cares what YOU paid OR how much YOU owe.”
Ouch… sentiment does not appear to favour debtor…
I’m off to the mountain cabin in a couple hours, through the SoCal High Desert. This should be an entertaining trip. I expect to see some interesting billboards and other offers. The cabin is also a great data point. Yard sales are terrific indicators of homeowner distress. I expect quite a few quads, jet skiis and powerboats along with the occasional “dualie” or other gas hog gathering weeds.
Let us know how the traffic is up to Mammoth as that is always a good indicator of free cash.
I almost chose to head up there to use my Mammoth Pass but the 1 month old already travelled to SLO so back to back road trips don’t sound like much fun.
Watch out for the traffic jam Monday afternoon through Lone Pine.
I have sat through 1.5 hours of Lone Pine traffic on Memorial day a couple of times.
I’m not going to Mammoth this time. Off to Wrightwood this time:
http://www.wrightwoodcalif.com/townlive.htm
http://www.wrightwoodcalif.com/hwy2cam.html
http://www.sigalert.com/map.asp?Region=Ventura
http://www.sigalert.com/map.asp?Region=Greater+Los+Angeles
http://www.sigalert.com/map.asp?Region=Inland+Empire
Good at least you miss the traffic.
Not much snow left in San Gabriels.
You should see a lot more HELOC toys for sale on taht drive though.
Lone Pine Traffic….. are you kidding? I grew up there and there is only one stop light. Do you mean Bishop? I sure miss those mountains. Eastern Sierra, can’t beat it!
Man, I’m jealous! My girlfriend doesn’t ski… so I’ve underused my pass at Mammoth this year. How we suffer… not!
I would be curious as to traffic to mammoth. However, we at the end of the bubble, so I expect the last big HELOC’s ATM’s will be in full swing.
I also agree, “need based pricing” has absolutely zero to do with sales price. Homes sell in an auction like environment. For five years people have bid them up…
My #1 concern is that if there is any “stall” in the secondary market for mortgages we’ll hit a big speed bump. Imagine if those banks actually had to hold onto the loans they make…
Neil
It is odd that MA makes every negative news piece. I wonder if it has to do with the lowering of income at the professional level, highly qualified people leaving the state in droves being replaced by illegal inmigrants with little to no knowledge, and MA scaring all the companies away with the ridiculously inflated cracker box house prices…
Then again we have all the genious MBA’s from Harvard dictating that we need to put our shoulder to it, and that it will be OK, we will also be able to afford a small condo in a dumpy part of town….
‘I am sad. I’m angry. I’m confused,’ says Bridget Edwards. ‘I love this house,’ James Edwards says.”
Stooopid…please tell me this pair hasn’t spawned more little cretins to further foul the gene pool.
Love the house, hate the payment…
Trust me. It is a wonder that we even evolve to a higher order. Look around and see the people in the neighborhood/town/city/neighborhood/country/world with the most children are:
1. The poorest
2. The most un-educated
3. The youngest parents
4. The dirtiest
5. The most prone to violence, and having someone in jail…
That is why I will limit the amount of children to 2.
I’m afraid I don’t follow you.
Actually large families are in vogue among the well-heeled, well-educated folks in NYC area. Having five children is becoming a badge of honor in toney places like Bronxville, Manhassett and Manhattan.
Give me a break! What on earth does how many children people have to do with a housing bubble???? I have four children and have am a teacher and have gone back to school to finish my masters. My husband has an MBA, as well as many investment certifications including his CFA. Many of our friends with the same income have three children. What an idiotic/racist comment! Too bad you didn’t limit your procreation to 0! We chose to have a large family because we are able to provide for them. I know many people who are considered poor based on their income and have chosen to have only one or two children. One teaching assistant I had spaced her children 5 years out so she only had to pay for daycare for one child at a time. What an ignorant comment!
oops, excuse the spelling errors! I was so angry, my fingers were running a little fast!
why racist?
why racist?
Because she disagrees with it. If you disagree with an idea, you can indicate so by labeling it “racist”. Examples:
Racist: “I don’t care for rice.”
You: “You’re a racist!”
Racist: “I believe that taxes are too high.”
You: “Only a racist would say that!”
Racist: “Did you see Mission Impossible III? I liked it.”
You: “You’re a racist!”
that’s funny.
It is NOT funny. You racist! Everybody here belongs to some race or other, and that is just offensive to ALL of us.
sorry again, I meant bigot, not racist! Didn’t mean to stir up that much controversy! However your prejudiced comments about poor, uneducated, convicts…. having lots of children really didn’t sit well with me. This board is about out of control housing not a place to vent your ignorant biases! The poor didn’t cause this problem! The greedy people who profited by selling a house/mortgage to people whether they can afford it or not did. The greedy investors that bought up property in hopes of a quick flip probably don’t have children and if they do, God help them!
Lizziebeth — this is one very tough room — and the better for it, IMO. Spelling errors don’t matter much, but inaccuracies stated as fact get slaughtered.
Great, now I am a bigot and Ignorant… YEEAEY! That is a sizable step up from Racist, is it not? Liz: Let me ask you this: Those who bought those overpriced homes, those who flipped them, and those that are bagholders right now, are they ignorant as well? You know, like the kind that goes and makes the bigest investment in their life on hearsay, and what their friends and relatives tell them, and of course RE never go down? Or are they shining examples of deep research, hours long in front of the spreadsheet trying to figure out how they are going to pay for the castle?
And why do you think that those “greedy” flippers do not have children of their own, and you are damning the children by the actions of their parents, are you not? Are you not in a sense doing exactly what you are attacking me about?
What would make a flipper a bad parent? Their chosen profesion? I can certainly think of worse things!
“Comment by John in VA
2006-05-26 14:21:36
“why racist?
“Because she disagrees with it. If you disagree with an idea, you can indicate so by labeling it ‘racist’. Examples:
Racist: ‘I don’t care for rice.’
You: ‘You’re a racist!’
Racist: ‘I believe that taxes are too high.’
You: ‘Only a racist would say that!’
Racist: ‘Did you see Mission Impossible III? I liked it.’
You: ‘You’re a racist!’
I’m crying, I’m laughing so hard. Suppposedly, 80% of Mexicans in Mexico believe U.S. citizens are racists because of their overwhelming opposition to illegal immigration. However, nobody can identify the race in question, since Mexicans comprise many races, not just one.
The kennedy’s, Duh! If you are rich you can afford a large family. It is like living in the 1800’s, if you were overweight, you were considered prosperous!
Still so in parts of Asia.
Liz: Ever go to a “developing” country? There generally are literally hundreds of thousands of shanty towns that sprawl all over the landscape filled to the brim with young children, and very young mothers. It is true in Africa, Asia, and South America. You know How I know? I was there…. I saw the young 13 and 14 year old moms, with their dirty newborns, and a severe case of Diarreah. Cholera, is a disease that is rampant. It is easy to treat, if the mothers knew that the only thing that they had to do was to keep the baby hydrated. When they got to us, it was generally too late, and antibiotics were not effective at that stage.
You Madam, have no business calling anybody that YOU do not know a Racist. You are unaware of what race I am, and what leads me to say what I say. You resort to an ad-hominem attack, just because I state what many studies have said. As far as what this has to do with a bubble blog, It has nothing to do with it. Just clearing the air, if you will.
“We chose to have a large family because we are able to provide for them.”
What an old fashioned idea! The modern man cares only how far and wide that his genetics may be strewn, a democratic entitlement.
In order to be in compliance with standards established by the CFA Institute (formerly AIMR), your husband has his CFA “charter.” CFA should never be used as a noun.
It is obvious you have never stepped out of the US of A. In most of the world having lots of children and a lack of education is the root cause of poverty. What is it that you can get in say 5 children that you cannot find in one or two? Having less number of children and giving them all the love makes sure that they are not neglected and receive a lot of attention and love. Not just that it also lessens the burden of resources our planet must provide for thier sustenance. Not thinking about these things and just doing what you want is not only being irresponsible but is selfish and ignorant. If everyone in the world was just like you then the population of the world will explode and none will be able to live a decent and fulfilling life. I am not trying to preach here but just stating my thoughts and I hope you take it that way and not label me a racist because I dont agree with you.
I meant to say that “In most of the world having lots of children and a lack of education is the root cause of a lot of problems”.
Penny_Pincher,
I’m with Lizziebeth. All this class/culture war crap is irrelevant and revolting. You obviously don’t know sh#$! about kids. I am forty two, waited to have my only kid, and from how I feel about the little guy, I wish I had 5. So, let’s talk economics, not spew self-satisfied, pseudodarwinistic offal.
I agree that we should get back to economics, but this class thing is part and parcel of the bubble. I wonder how many people just bought a house so that they could show it off, even though they knew that they did not have either the income or the money to do so? How many people live on their CC’s all their life? Education, and the choices one makes in life will greatly determine what that outcome will be.
Worldwide fertility rates decrease as education increases.
That is a fact.
The less educated generally have more kids than more educated.
It is really just simply the difference between and R and K reproductive strategy.
In the late ’70s and early 80’s, the responsible slogan was, “Two will do, adopt a few”, implying no slur on larger families but requesting personal responsibility to avoid overpopulating the planet.
Make your own conclusions as to how that has worked out.
“All this class/culture war crap is irrelevant and revolting.”
The housing bubble in CA has reduced cities like San Jose to the rich and poor while the working middle class must move away. The HUD Section-8 program has allowed the poor to destroy the quality of life in many former blue collar neighborhoods. I find it revolting to pretend otherwise.
Yes, education of women relates negatively with birth rate, and the rest. Nobody is sticking their head in the sand here. I just found the list of insults about people with large families to be gratuitously offensive. You have lowered the bar by insulting the poor. We have also known about urban blight for a long time. So the point of this thread?
I have 4 kids and people look at our family like we each have 12 heads….. I always say, “yes they are all mine and it is the same father” Ha-ha.
“evolve” - that Darwin thing?
Lady have you not heard of “micro Biology? or Bio-Chem?
see: Darwin’s Black Box…Michael J Behe..
You can become a millionaire if you can prove on a cellular {DNA /RNA} level that ANY “animal” or plant evolved to another. Just one and you get a MILLION. A Professor of @ Mass. Univ. I believe
presented this challenge to her collegues… Its all about those “amino’s and lil’ els”’….just have to work the same…or teh mutant dies.
Zero for me.
ill knocku up
She forgot, “I’m stupid”, “I’m ignorant”, “I’m greedy”.
Yep that is the really scary part of natural selection of humans today.
I bet that they have a passel of them. Whereas prudent people are being outbred by cretins.
Or the more materialistic are being outbred by the humble.
I like that Tulk. Nicely said.
‘I am sad. I’m angry. I’m confused,’ says Bridget Edwards. ‘I love this house,’ James Edwards says.”
They apparently thought they could have the $600,000 dollar house of their dreams for $800 a month? Shocked by payments adjusting?
I bet I’d love their house too. I just can’t afford it, so I live in something much more modest. What idiots.
This is very funny.
This article kinda tosses the theory that high-end buyers/debtors are untouchable. They thought they were, too. A very, very tough lesson.
BayQT~
Read again. These people in the article aren’t high end. They are described as “buying more than they can possibly afford.”
There are very few true high end buyers, the distribution is a bell curve. Trust me, I know high end buyer, high end buyers are friends of mine, these are not high end buyers. High end buyers do not overpay, high end buyers do not buy more than they can afford. If you are old enough the Midas Muffler commercial: “Young man, how do you think a man like me got to be a man like me?”
Point taken, Robert. I should have probably used the term “well-to-do” which is how the article describes them. Perhaps the writers of the article mis-named their subjects. But I do agree with you, *true* well-to-do don’t usually get caught with their pants down, and they also have lawyers, accountants and other help to make sure that their pants stay up.
Regarding the Midas Muffler commercial…it kinda reminds me of when one of my daughters (in her younger, formative years) said to me when she realized I was right about something we were talking about, (paraphrasing) “Hmmm…I guess that’s why you’re the Mom, and I’m not.” She knew even then that there was a benefit (at least in my case at that time….I’m obviously not talking about everyone or people wouldn’t be in the trouble their in) in being on the planet longer than she and learning the lessons that I learned.
BayQT~
The truly well-to-do can lay out 4 or 5 million for a second house or third house without batting an eyelid. I know them.
Well to do would also be a stretch
Not sure I understand your comment.
Wasn’t meant for you Pete. I was referring to the people in the article. Calling them well to do would be a stretch
The truly high end buyers Robert, do not care if they over pay by a milskie or so.!
Nah, they hate losing money.
That is why they have lots of it.
Buffet’s first rule of investing don’t lose money.
Robert, I do not mean to be disrepectful, but to me, a high end buyer has a net worth of 100 milskies or more. They do not worry about the cost!
I don’t get no respect! Seriously, a friend who owns a sizeable portion of Upper New York State, who bought a castle in East Germany just prior to EU formation drives a Honda Del Sol. He bought the castle because the minor title that went with it gave him direct standing in the Courts. Saved him millions. Trust me, a $1 lottery ticket is the same to him or more than to anyone else. he doesn’t have to buy 10,000 and more precisely he wouldn’t.
No sense in arguing about our wealthy friends. Most of the ones I know are very nice decent people.
I know two people who are worth well over $100 milliion each, one is a close friend, one a business acquaintance. Both would stop to pick up a nickel on the sidewalk and netiher will pay retail, so to speak, for real estate.
I have done accounting for several wealthy folk. I can say they hate to waste money more than joe6pack. Ask one if he\she even pay bank charges, much less overpay for property.
Both my parents happened to work at H&R Block for awhile. They are divorced and not in communication. They both abounded with stories of the people with $250 tax returns who paid Block $100 to get the rest of the money now instead of in six weeks. One young gentleman was insistent that he needed hubcaps.
I’m supposedly pretty well off according to zillow (yeah, right, but it should be relative) and household income. I bring my own lunch to work, the wife and I adusted our schedules to carpool, and we paid under $25K for our last two cars, combined. I spend money when I really feel I am getting something in return.
I have a friend making $30K/year who pays 33% more for cable than I do.
I think there are those with that crazy money out there. But those ships don’t keep coming in forever, and once they do only the smart ones keep it (or get there without a windfall).
The bottom line, the rich are many and varied.
i’m not reading any more of this propoganda until ben clears his desk
article about Fannie Mae
http://news.yahoo.com/s/csm/efannie;_ylt=ArauC83frs5WE9Tq1sZnpQQDW7oF;_ylu=X3oDMTBhcmljNmVhBHNlYwNtcm5ld3M-
Yes BayQT,
In my town in Southern Oregon, local working folks have not been able to buy in town for several years, while retiring Bay Area folks move in, build custom yoga studios, buy a hummer, and go to the gym to talk to others about where to score a second and third home. Or they simply stay in the BA and by a second home here, sometimes sight unseen. I am assuming that the whole overleveraged, greed driven model will flush soon. And the “untouchable” people will get hurt, to the degree that they assumed continued growth would continue forever.
On the bright side, I hope the Teachers, Policemen, Firemen, and College Professors, etc. will one day be able to live in the town where they work.
There are two types of “well heeled” buyers.
I only aspire to buy into the house of the ones who are faking it.
I hope for 50% off. 
If not, I have other plans.
But I have known truely well to do people too. These people will purchase additional homes for themselves or their kids in the downturn. Sigh… I hate having to compete with them, but cest la vie.
Again, I expect a strong summer and then a huge correction!
Neil
I strongly suspect this Milwaukee story about the rich guys who bought more house than they can afford applies to many Californians, perhaps many more Californians than Milwaukeeans, given how much crazier our housing price inflation has been. I can hardly wait for the tide of easy lending and speculative euphoria to go out, so we can get a clear view of all the naked swimmers.
Yep, just waiting for the tide to reveal all.
maybe if they could at least be wearing board shorts. i’m not sure i want to see a bunch of fb’s in their birthday suits
average mortgage payment could be $9,600 a year more.
According to CNN/Money, 22% of the 8.7 trillion mortgages held by Americans will reset in 2006, which means a typical 3year a.r.m. will go from 3.6% to 5.6%. On a 500k mortgage, the monthly payment would increase by $800, which should exacerbate an already struggling real estate market.
That’s incorrect - 0.33/8.7=4%
http://money.cnn.com/2006/05/18/real_estate/mortgage_rates/?cnn=yes
“The Mortgage Bankers Association estimates that some $330 billion worth of ARMs will adjust in 2006 and $1 trillion worth will reset by the end of 2007. With a $200,000 loan adjusting upward from 4 percent to 6 percent, the monthly bill would increase to about $1,200, from $955.”
The pure sense of entitlement and privilege from people irritates the hell out of me. Just because you want something doesn’t give you in the inalienable right to have it regardless of your financial situation.
I would love to have a Ferrari, but I can’t afford the cost + taxes + insurance. Say someone allowed me to buy a Ferrari for $200/mo (why is it so cheap? I don’t care, I get a Ferrari!). If I drove it for 6 months and then the lender said it would now cost $400/mo, but I can’t afford $400/mo, is that unfair? I love the Ferrari — is it my right to be able to drive a Ferrari? Um, No! I shouldn’t have had it to begin with if I couldn’t afford the real cost.
Housing is no different…
A Ferrari for $200.00 a mo. Stop toying with my senses.
Novarenter - spot on.
I agree with the problems of the entitlement culture.
Has anyone seen the MTV show My Sweet Sixteen. It’s a hideous show where spoiled rotten kids plan their killer birthday party. One kid I saw spent $300,000 for his party and complained that the next one was going to be better.
You grow up watching that, and don’t see people struggle and save for something they want and have a terrible attitude.
I can’t wait till this market takes the smug attitudes of people and replaces with respect for discal responsibility.
Simmsays…
http://www.americaninventorspot.com
“I am sad. I’m angry. I’m confused.”\
You’ll have plenty of company soon at the Foreclosures Anonymous meetings. Admitting you belonged in a 500-ft rambler is the first step to recovery.
Seriously, though: decent societies don’t let people buy houses they can’t afford. Not to save fools from themselves, but in order to save everyone else from fools. Affordable housing is a common good, but ignorance, predatory lending and speculative greed destroy it.
Maybe we’d like to become a decent society some day, eh? If we ever evolve past our knuckle-dragging market fundamentalism, then it might happen.
No, decent societies don’t legislate in a government guarantee for every darned thing under the sun, thereby causing serious distortions in market prices - and then invoke massive taxpayer-funded bailouts at every opportunity. I wouldn’t call it “decent” to punish prudent citizens and reward irresponsible citizens.
From the original article:
> Some families were steered towards loans they shouldn’t have been.
Excuse me, was there any coercion involved here? Statements like the above are the mechanism to soften up taxpayers for the bailouts.
Affordable housing (just like affordable everything-else) will happen all on its own. All the Government needs to do is get out of the way, and stay the he** out.