Is it bad for the govt. to get involved in the mortgage crisis? Isn't it our responsibility to pay r own debt

Question

I think "What part of LOAN don't people understand?" What happened to saving money for a rainy day? If the government steps in won't that just make people think they have a safety net and just be more irresponsible? I actually don't make vey much money and I pay MY bills. I dont get people who make three times as much not paying THEIR bills.

Answer 1

The reason we r in a financial crisis is because our dollar value has gone down. We need to produce less money and then each dollar will be worth more. Our government backs each dollar with gold, so the more money we have the less each dollar is worth in gold.

Answer 2

YES. I AGREE COMPLETELY.

I'm so sick of everyone expecting the government to pick up the pieces of their sorry lives, whether it be having too many kids and wanting free education, welfare, free healthcare, unemployment compensation, or wanting the government to help them because they used their house as an ATM for the last 10 years.

I'm 25 and saved like mad the last 4 years of my life to put a good down payment on the house I bought last year.  Would I have loved a big home with a garage, 4 bedrooms, and 3 bathrooms?  Sure thing.  Could I have gotten 100% financing? Probably, I have good credit.  Instead I settled on the 2 bed 2 bath fixer condo without a garage because I could afford it.

It's too bad everyone can't be frugal, sane, and not spend beyond their means.  Would've saved me a 20% loss in my retirement funds this year if the majority of people weren't financial idiots.

Answer 3

people over extend themselves to "keep up with the Jones" as the saying goes,so they are living beyond their means.

Now regarding the Mortgage crisis I blame the banks, alot of them never botherd to do a through check into the incomes of the buyer.   "they" the bank would just take the buyers word without any written proof regarding income...

therefore those of us who are now trying to buy a home are having our income taxes and paystubs double and tripled checked.

Answer 4

While I agree with you on that aspect, a lot of people that got loans didn't understand exactly what they were getting into, also when you have an ARM loan you assume that in 3 years when the ARM goes up you will have an increase in salary, bonus's etc.  What happened was those people didn't get pay increases or bonus's because their companies weren't doing well and therefore not giving raises, so here they are 3 years later making the same amount of money yet their mortgage now suddenly increases by $2000 and now suddenly they can't afford the mortgage along with everything else.

Because of the overwhelming amount of people that have gone into foreclosure and all the homes the banks are now saddled with the banks are struggling, the economy is suddenly making a turn for the worse.  By the government stepping in and allowing these people to "refinance" their mortgages to a low fixed rate they can then get back to an amount they can afford and therefore keep their homes.

The government isn't giving these people money, they are making it so they can now refinance if they face foreclosure, which the banks were not allowing them to do because of the missed payments.  They are getting an opportunity that wasn't afforded to them before.  I wouldn't call it a safety net and it still doesn't allow people to get stupid and irresponsible it just allows them to keep what they have.