Last night as I was trying to fall asleep the news of the day kept rumbling around in my noggin. I couldn't get my head around the fact that some people were opposed to the third leg of the Obama rescue plan. I am referring to the housing bail out plan designed to stop the hemorrhaging of foreclosures. I will call those oppositionists the 'complainers'.
The people against it are complaining because they don't want to be forced to pay for their neighbors mortgage because 'said neighbor' lied to buy a house they couldn't afford. (I will refer to those people as 'losers'.) The mantra goes like this: Why should I pay for the houses of people with their extra bathrooms who bought a house they couldn't afford when I have been responsible and played by the rules and made my payments on time?
The first point I would make is that this is a gross exaggeration of the people who are losing their houses. Yes, some did buy houses when they clearly couldn't afford them, but others were just as responsible as the complainers. They made their mortgage payments on time, could afford the house when they bought it, but, through no fault of their own, are now unable to make the payments. Usually, this unfortunate circumstance is due to the loss of the job of one, or both, of the breadwinners. To the complainers I would say, "Be careful because you could be next."
The second point I want to stress is that those losers won't be bailed out. It's the people who have equity in their houses that this program will help. The irresponsible losers have no equity (remember the banks were happy to sell them houses with no down payment). Not only did the losers obtain the house with little or nothing down, but all the payments they have made have gone to interest. Ergo - no equity.
The third point I would make is, if the government doesn't stop the downslide of the housing market the complainers own houses will continue to lose value as the foreclosure signs go up around them. An abandoned house deteriorates very rapidly and is a magnet for squatters. Would the complainers rather have a drug dealer next door or the neighbor who was evicted? I grant you that this might seem like an extreme argument until you look at some neighborhoods where the foreclosures were many.
The fourth point I want to stress is, if nothing is done the economy is done for. The housing bubble started this big hole we are all in and it must be addressed along with bailing out the banks and auto industry. If it isn't stabilized, new homes will not be built and how many jobs will be lost because of that? Just as the auto industry has other businesses dependent on it's survival, so does the housing industry. Just think about all of the things that go into a house. From the Realtor's first selling the lot to the last piece of furniture, hundreds of jobs are at stake. Isn't this what the stimulus package is supposed to do? I thought the whole object was to 1) create jobs and 2) save jobs.
The complainers are classic examples of failing to see the big picture while they focus on their own narrow view. It is crisis time. We all have to sacrifice because we are all in this mess together.