I have been reading a lot recently about the subprime mortgage bailout that is being proposed in Congress. I must say that this whole concept in making me frustrated.
In the US, in a democratic society, we all have the right to choose how we live our lives, and the decisions that we make. I believe that we are all responsible for the decisions that we make, even the bad ones. So why do I keep reading articles that are talking about "people that did not know any better", and about "predatory lenders". Both of those concepts make no sense to me at all.
Taking out a loan for a home is a serious undertaking, and should only be attempted by those who really know what they are getting into. If you do not feel like taking that kind of risk (and yes.... buying a home has an element of risk to it), you can certainly rent somewhere instead. Owning your own home is certainly not a "right" in the US. I think the quotation that comes to mind is, "Ignorance of the law is not an excuse to violate it". I think this also applies to taking out a loan for a home. If you take out more money for a home loan then you could hope to pay back, then you deserve the financial reprecussions of that bad decision, just like every other decision in your life. If I touch a hot oven, it is certainly not the oven's fault that I got burned.
As for the term of "predatory lenders". The only way a bank loan can be oppressive upon anyone, is if you were to sit down at the loan office, and the bank manager pulls out a gun, and forces you to sign it. You are always free to walk away from a deal if it is not to terms of your liking. The banking industries got hit just as hard on this deal as anyone else. And the govt should not be bailing them out either! In a free country such as ours is, for this problem to occur at all, took two parties. The bank to offer way too much (a bad financial risk on their part), and the individual agreeing to the loan (a bad financial risk on their part). There was certainly no force or coersion used by either party to make that deal. But such is the freedom of living in the US. we are FREE to make foolish choices as much as we want to.
I am curious what some other here on the forum think. I am sure some will agree with me, and some will not. But in either case it will be interesting to see how other people think about this one.
In the US, in a democratic society, we all have the right to choose how we live our lives, and the decisions that we make. I believe that we are all responsible for the decisions that we make, even the bad ones. So why do I keep reading articles that are talking about "people that did not know any better", and about "predatory lenders". Both of those concepts make no sense to me at all.
Taking out a loan for a home is a serious undertaking, and should only be attempted by those who really know what they are getting into. If you do not feel like taking that kind of risk (and yes.... buying a home has an element of risk to it), you can certainly rent somewhere instead. Owning your own home is certainly not a "right" in the US. I think the quotation that comes to mind is, "Ignorance of the law is not an excuse to violate it". I think this also applies to taking out a loan for a home. If you take out more money for a home loan then you could hope to pay back, then you deserve the financial reprecussions of that bad decision, just like every other decision in your life. If I touch a hot oven, it is certainly not the oven's fault that I got burned.
As for the term of "predatory lenders". The only way a bank loan can be oppressive upon anyone, is if you were to sit down at the loan office, and the bank manager pulls out a gun, and forces you to sign it. You are always free to walk away from a deal if it is not to terms of your liking. The banking industries got hit just as hard on this deal as anyone else. And the govt should not be bailing them out either! In a free country such as ours is, for this problem to occur at all, took two parties. The bank to offer way too much (a bad financial risk on their part), and the individual agreeing to the loan (a bad financial risk on their part). There was certainly no force or coersion used by either party to make that deal. But such is the freedom of living in the US. we are FREE to make foolish choices as much as we want to.
I am curious what some other here on the forum think. I am sure some will agree with me, and some will not. But in either case it will be interesting to see how other people think about this one.