The World Is Full of Stupid People

As I type the subject (for my non-existent audience), it occurs to me that this could be about a myriad of things. I could be ranting about the religion of global warming, oration as political qualification, people that wait in line for iPhones, etc… In this case I am going to choose the mortgage crisis as a subject.

I’m poorly educated and the only thing I was ever taught to do with money was tithe. So, I can’t claim to have any great knowledge or insight into financial matters. However, I do think I have a grasp of the obvious. This apparently puts me well ahead of a significant portion of the population.

I can not comprehend what was going on in people’s minds when they agreed on things like interest only loans, no-down-payment loans or subprime loans. Let’s go over this, if you are only able to pay interest you are one interest rate hike away from not being able to afford it at all. Likewise, if you are only paying interest you are more than likely wasting your money. No money for a down payment? Umm, may be you shouldn’t be buying a house! Horrible credit? Here’s a idea, fix your credit then buy a house! Yes, in this case it is smarter to rent until you can get a reasonable interest rate. It doesn’t do you any good to buy something with such high interest rates that you can’t possibly pay down the principle.

As we consider government buyouts and we hear all these sob stories about people losing their houses, I can’t help but consider how the ones being punished are the non-idiots amongst us. There are people with houses that have no business owning one. Any aid they get of any sort is at the expense of taxpayers, lenders or simply disrespectful to people that actually chose not to buy things they can’t afford. Don’t get me wrong, the lenders did a lot of things wrong as well (what good is loaning money to people that can’t pay it back?). Ultimately this is a example of everyone turning into lemmings and blindly following without stopping to think about the consequences.

There’s also a lot of hypocrisy going on. We are supposed to care so much about people losing their homes or owing more than their home is worth? Firstly, everyone who ever bought a new mobile home has a upside down mortgage, ok? I don’t see us doing thousands of reports from trailer parks talking about the poor people who owe more than their “house” is worth. Secondly, we all face consequences for our actions in life. Why should buying a house we can’t afford be any different? While it might not be possible for our financial institutions to survive this mess, it would teach everyone a pretty good lesson if they had to face the consequences of their actions. You’d see more responsible lending and more responsible buying, that’s for sure.

I saw a report about a family that had to move out of their home because of the “mortgage crisis” (in other words they are bad with math). So, they were “forced” to move into their giant RV which I’m pretty sure costs more than a lot of houses. Yeah, I’m really feeling sorry for them right now, you know without the marble counter tops of the like they used to have.

Here’s a idea people. If you can’t afford something how about saving up until you can afford it? Perhaps take some time to repair your credit if needs be. Here’s some hints, only buy stuff you can afford and if you need to, cut some corners until you have repaired your finances. Instead of, going to the movies, out to eat, buying new stuff you don’t need, PUT IT IN THE BANK! How about trying that out?

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