Whining About The Mortgage Crisis

I’ve been listening to a lot of progressive radio recently. I have been an on and off listener of progressive talk since its local inception, but I have never heard the number of right wingers calling the progressive shows in the numbers they have been calling in recent months.

I don’t have a problem with them calling, in fact it can be pretty entertaining, especially on The Stephanie Miller Show, but some of the things they are calling about are so dumb. Helicopters, socialism, homosexual influence, and some even still talk of Obama’s birth place.

But what I am most sick of, are whiney ditto heads calling up and complaining about somebody who signed a bad mortgage getting some kind of help from the government, while those who were “responsible” don’t get anything. I just had that conversation with my 11 year-old over piano lessons. Arguments like that are at an 11 year-old mentality level, not for common-sense grown adults. And if you are reading this and you really don’t know why a program like what Obama is proposing will help you, let me tell you a true story.

I applied for a loan yesterday. We were looking at moving a few years ago, and it was thought then that our little house would sell for $239,000. I know the value of my house has dropped. My guess was that it was worth around $200,000, that is what the banker thought too, and our tax statement lists it in that range, but I was shocked when the credit union pulled the value at $178,000. There are several houses in my neighborhood that have been foreclosed on. There are several that have sold very low preventing foreclosure or even after foreclosure. Maintaining the value of your house is what you get out of Obama’s plan you whiney lemmings.

Now one other thing in defense of those that signed bad mortgages. When my wife and I bought our house in 1996, we were completely dependent on the advice of the agent and lender. We were 25, and had never done anything like it before. We barely bought our house for $99,000, that amount stretched our approval limit into a variable rate, and our salaries were about half of what the house was purchased at, that is a pretty decent ratio today.

Now fast forward 10 years. Our salaries have not increased very much because my wife stays home with children. We basically have one income, barely more than it was in 1996, and when we went through the process to get pre-approved for a home loan, we somehow qualify for a $289,000 loan. How is that possible? If you take into account inflation, we are probably making less than when we bought our house in 1996.  How do we qualify for nearly triple the home cost?

If we were 25 again, in that same situation, I’m thinking we would probably trust our agent and our lender. We weren’t 25, so we didn’t, but my assumption is that many did.

Whose fault is it? Is it the buyer? I think lenders looking for quick money through mortgages that could be dumped into securities with no loss are the people responsible. They are responsible for the downturn in the economy, they are accomplices in the Bush recession, they are the reason for the banking collapse, and everything they have done in a greedy manor stinks, just like the people trying to blame the innocent.

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4 thoughts on “Whining About The Mortgage Crisis”

  1. Salespeople – mortgage brokers – are often sleazy. But how is it a salesperson’s fault that someone takes out a bad loan?

    Do you blame the car salesman for selling you a car that cost more than you could afford? On a smaller note, do you blame Vizio’s sleak advertising and Best Buy’s multiple finance options for the fact that you sink $2,000 into a TV you later realize you can’t afford?

    Where is personal responsibility? Why is that not a factor? And is it really contributing to the dialogue to call those of us who disagree with Obama’s plan “whiney lemmings”??

  2. First off, don’t take my comments out of context, whiney lemmings are the ditto heads complaining that they don’t get anything from Obama. I respect disagreement, it is a cornerstone of democracy. I respect people who have completely opposite views as mine, as long as they truly believe it and are not just parroting a radio talk show host.

    Secondly, personal responsibility is a big factor in all of this. There are people that knowingly spent beyond their means, but to deny marketing isn’t a factor is as absurd as saying everything is the individual’s fault. Do you really believe that half the major banks barely survived thanks to the government because customers made bad decisions? No these banks in pursuit of the almighty dollar convinced people they could afford something they couldn’t. The government is juar attempting to prevent a total collapse, that will affect you and me who didn’t make poor decisions.

    We live in a community, and unless you want to move toward some lawless society, it is important for us to protect those who can’t protect themselves. Why are so many republicans so committed to protecting those who can’t protect themselves, but only until they are born? After that they are on their own right? Well there are people out there who are not as smart, or as conscientious as you, and they need protection. That is why we need regulations, services, and protection. And in times of crisis, we can’t just let people sink or swim if we want to maintain a community. We need to help those who cannot do it on their own. It is Ash Wednesday, a great day to quit judging and start caring.

  3. I agree, the banks own a lot of responsibility. So does our government. After all, it was Clinton who insisted that every American should be able to attain the American dream of homeownership. It’s a lofty goal, but one that isn’t achievable through ARMs.

  4. Oh, and I agree completely on the whack jobs on talk radio. I gave up on talk radio a long time ago. I rarely hear anything accomplished on it. It is good for entertainment once in a while though.

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