Wednesday, August 22, 2007
I feel compassion for those caught up in the subprime debacle but....
The Democrats want to bailout the borrowers from their bad decisions. Hillary Clinton wants the government to issue a $1 billion federal bailout to avoid foreclosures. New York Senator Chuck Schumer and other Democratic senators have joined her. John Edwards has also recently attacked subprime lenders until it was discovered he had 16 million dollars invested in Fortress Investment Group, a firm involved in the foreclosure of more than 30 homes. This is just another reason not to vote Democrat.
I tend to be very conservative in my approach to life. I worked hard to obtain my BS, and my MBA. I paid my own way through college. I did the apartment thing. I worked, I saved, I bought a house with a substantial downpayment. I made sure my income far exceeded the amount of the mortgage. I invested; I diversified because I did not want to find myself in a financial bind. In 15 years I paid off my house, and I continue to build my portfolio. I did all this with a neurological disorder that has impeded my way to the top and which has made me have to make several compromises along the way. I don't presume to be full of braggadocio, but my intent is to point out the anger I feel when I see the liberals wanting the government to take care of everyone from cradle to grave.
I have heard all the excuses for people not being able to get a college education from I can't afford it to its just too hard. To this I say - "Bull Pucky!." Statistics show that people with college educations earn far more than people without college educations. I have known a lot of people whom I thought could never earn a college degree, and time and time again these people have proved me wrong. If you have a child out of wedlock, if you end up in a gang, if you get kicked out of your house - those are your choices. Regardless, even if you have made mistakes, it only toughens the odds; you can still earn that degree. In America, there is always a way.
Try Central or South America. The only way to get ahead in those countries is through political connections or owning a business. People all over the world are clamoring to enter the United States, yet we keep hearing the liberals complain. How about this for an immigration solution. For everyone who wants to hug Hugo Chavez or blame America first, I say we should exchange him/her for one person in another country south of the border who wants to come here and work hard, get an education and be a part of the U.S..
Everyone wants the American dream. We live in a world of immediacy. We want everything now. Saving for tomorrow is just putting off the inevitable, so college students rack up average credit card debts of 10,000 dollars at a time when their parents pay for everything. Savings rates are at all time lows. If we can't afford to pay for vacation, we will just put it on the credit card. I can't help all the bad decisions people make.
During the dot-com craze, instead of starting businesses in garages like Hewlitt Packard and Intel, venture capitalists poured money into so-called full-fledged business with no proven model or record. It was a recipe for disaster.
People can make all the bad decisions they want until it starts affecting me.
So, now let me get this straight.
Joe wants to buy a house. He walks into a lender. The lender gives him some forms to fill out. Joe inflates his income to make sure he will get the loan. The lender understanding that Joe (even with his inflated income) doesn't make a lot of money and has not been at his job very long still lends him the money. He just ups the interest rate but not for the first twelve months. The first twelve months, Joe will be on easy street, but then his payment doubles. 12 months pass, and Joe can no longer afford the mortgage, and the lender is forced to foreclose on his home. In addition, from the time Joe bought his house to the time he is forced to foreclose, his house has devalued so he now owes more than he borrowed. The Democrats want me and you to pay for his mistake by bailing him out.
Joe is a man who lives beyond his means like so many others in this subprime debacle. He should rent but wants to buy. Houses continued to appreciate due to the plethora of these shaky loans, but it was an artificial appreciation since people who should not have been buying houses continued to buy. Under normal circumstances, these borrowers would not have been able to make such loans. Both lenders and borrowers alike were caught up in this subprime world hoping that when the inevitable crash occurred, it would be the other guy who would be caught with his pants down.
"We will raise your taxes" should be the Democrats motto. You can't afford health insurance, don't worry, we will raise taxes, and give everyone health insurance. You can't afford to pay your mortgage, don't worry we will raise taxes, and everyone will pay your mortgage. You can't afford to pay for Global Warming (you know that hoax everyone is talking about), don't worry we will raise your taxes. You don't have any money but you had six kids out of wedlock, don't worry we will raise taxes, and everyone will pay for your kids. You can't afford to pay your taxes, don't worry we will take the money away from the ones who busted their butts garnering the necessary tools to become successful and they will pay your taxes.
The only people I want to bail out are my kids and at my discretion.
There are certain things I don't mind giving to:
Joe for short term assistance
Certain medical research, etc
but do not force me to give to every bad decision made by every Tom Dick and Harry!
Yet, the Democrats are poised for a comeback - go figure!
Read Michelle Malkin's piece on it