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Cynthetiq · 07-25-2008, 10:24 PM

Quote:

Originally Posted by pan6467

I love this quote. So you are willing to destroy the entire housing market, a few banks, send an entire industry down the tubes along with 1000's of jobs. Have the Federal government pay BILLIONS possibly even a TRILLION or 2 to bail out Fannie Mae and Freddie Mac, truly test the FDIC, {who by the way has 99 years to give you you insured money back}. All this, just to teach some people a lesson. How noble of you.

I didn't force someone to buy an SUV that costs >$100 to fill up each week. I didn't force someone to sign on an 5/1ARM loan with a P&I that was 40% of their monthly income for the first 5 years and destined to get higher when the ARM kicked in. Don't worry, the housing market will increase, you'll be able to refinance and take out cash, refinancing is easy.

Noble? Fuck that. I didn't bite off more than I can chew. I'm not the spendaholic. Why do I have to go to rehab?

I saved money while people took out home equity loans. I saved my money and didn't refinance and take cash out of my primary residence like it was an ATM. I didn't lease a car and wind up in a leasee trap having to release a new vehicle every end of contract because someone didn't save for a downpayment to buy another vehicle.

But you keep telling yourself that we still need to go out and buy or spend our way out of this mess.

http://www.nytimes.com/2008/07/20/business/20debt.html

No, see as far as I can tell there are people who saved their money and are buying bargains now. I just bought another house, my third in fact. It goes out on the rental market tomorrow. There are people buying up real estate owned (bank owned properties) at record speed. And no I didn't buy this property with an interest only mortgage, 20% down, cash from savings. Not some exotic piggy back loan, 0% down payment.

Maybe I should have just squandered my money and equity because Nanny State will take care of me and bail me out of trouble.

Another company will buy up their assets, no different than bargain houses. Companies buy up other companies all the time. Hey but you'd rather bail out people and companies who made mistakes. No consequences for them or their actions. Great!

You keep telling yourself that story, because as far as I can tell there are plenty of people out there doing just fine even some people who are making minimum wage. It's a simple process really. It's called living within your means. Your spending cannot exceed your income.