Friday, March 6, 2009

Just Tain't Fair

The recent bailout on mortgages is irritating. I bought my property in Arkansas in 1988. I've paid on it for a little over 20 years which includes one refinancing for additional funds to do some fixing up. In March of 2009 I will make the final payment. I've been through some difficult times where both my wife and I were laid off at the same time and had to finance living with credit cards. I've had some good times where I had a job for 18 months that eliminated the debt I'd accumulated during our unemployed times. I have pushed hard to pay down on our mortgage, so we could pay it off early, mainly because in a few years I am going to retire and it is part of retirement strategy to have those kinds of expenses gone.

Now, persons who bought a home in a bad market and are upside down on their value are going to get bailed out. People who's mortgage is greater than 31% of the gross income are going to get a deal. Bullshit!

The market forces operate pretty effectively rewarding those who are both lucky or diligent and punishing those who are foolish or unlucky. Market forces aren't fair, no one has ever said they were, but propping up the market can make the volatility even more erratic. This bailout is tantamount to providing loser insurance to those who frequent casinos. I'll have worked hard to pay my mortgage off, but I'll not bow my head because some government entity had to bail my ass out. I got myself into trouble, I've gotten myself out of trouble. It still angers though to see some who were not wise in their efforts or tried to catch a market on the way up are getting bailed out. It would be painful, but the market should be left to adjust itself.

1 comment:

  1. I have a feeling we'll be having some interesting conversations on this topic when we're visiting in April.