President Obama has announced a “landmark $26 billion settlement between the nation’s largest banks and states [that]would speed relief to homeowners harmed by “plainly irresponsible” mortgage practices and begins “to turn the page on an era of recklessness that has left so much damage in its wake.” That quotation is taken from the article I will link at the end of this tirade. You see, the problem I have is that every time the liberals talk about the housing crisis, two important words are always missing from their dialogue. “Personal accountability”. They never lay any of the blame at the feet of the mortgage holders and usually make them out to be innocent victims. This just simply isn’t true. No one held a gun to their heads and made them take out high interest loans. So they owe more on their house now then it is worth? Big deal. This should only become a problem if you sell it. Which, again, no one is forcing you to do. It’s like when you own a stock in Apple. You buy the stock at $120. The stock loses value in the following weeks and is currently worth $100. If you sell it, you have lost $20. But if you hang onto it, you have lost nothing. Everything in life is a gamble. Sometimes you win and sometimes you lose. Why should the government pitch in to pay your losing wager? I didn’t go out and buy a million dollar mansion during the housing boom. Why not? Because I knew I couldn’t afford it. Also, where is that $26 Billion dollars going to come from? This is one GLARING mistake that Keynesian minded folks make time and time again. They applaud a settlement like this like the damn banks are going to go get that money out of the evil CEO’s bank account. This is not how it works. They are going to raise their fees and pass this cost right along to their customers. This is how it always works. I understand why they are doing it, I just wish folks would stop standing up and cheering like they have personally socked Satan right in the nose.
http://abcnews.go.com/blogs/politics/2012/02/obama-says-mortgage-deal-turns-page-on-recklessness/
take a leap