Since when is being upside-down on your mortgage the government's problem?

Question

I've lost money in the stock market, I don't think I need government assistance because of that. My parents were upside-down in their mortgage in the 1990s but made the payments and rode through it.

So why do people think it's the government duty assist people who are upside-down in their mortgage? The possibility of the value of a house going down is something the buyer should expect. If you can make the payments, then they're okay. It's only bad for the irresponsible people who got one of those subprime or interest-only loans, so they deserve no help. It's also bad for people who cash out equity to buy things they don't need, people who use equity as a supplemental income which is irresponsible. That's it.

If you were responsible and got a loan you could afford in the first place, yeah being upside down sucks, but it's managable.

Answer 1

It's not.  People need to be more responsible for their own financial situations.

Answer 2

It's NOT. An UPSIDE DOWN AMERICAN ECONOMY AND A MORTGAGE CRISIS NATIONWIDE IS

I REPEAT

IS

THE GOVERNMENT'S PROBLEM!

Answer 3

It isn't.  Nobody forced anyone to over finance their home or over-extend themself..

Answer 4

You're dramatically over-simplifying the issue.  It becomes the governement's problem when the unregulated lending practices (which, BTW, goes to show how unregulated business practices DON'T work the way Republicans want you to believe they do) lead to banks collapsing, economic recession, and and a downturn in the American economy.