oops.

Um... you mean that rich people might default on their mortgages too?



Let them burn.

Why does the bailout penalize financially responsble people?

Ok, another post about how pissed I am.

First I hear about a great thing. "They" have a plan to lower mortgage rates. A plan that allows for a 4.5% or even a potential 2.5% interest rate. Finally something in this mess that helps me out directly and sounds like it will end up helping everyone in a bad mortgage as well.

This is sweet!

Then I read that "They" are talking about limiting the plan to new purchases, not refinances.

This is not sweet. It actually sucks.

It means that everyone who did their part in destroying the economy and purchased a home that was too expensive, which they could not afford *and* lost it through a short sale in the financial turmoil has a better chance than me of getting a great rate on a new mortgage. It's possible that even people who were foreclosed on might have a better chance.

So I'm pissed.

Because I did everything "right", because I paid my bills and only purchased what I could afford, I have no chance at all of getting that rate.

Since I am all paid up and fiscally responsible, I won't have the same chances for mortgage rates that someone else has. Because I can pay my bills, I'm screwed. I'll continue to pay higher rates and be treated like a second class citizen. And you know what else? With rates that cheap on new homes, people will realize the best deals are on the empty McMansions that are suddenly affordable. As a result the property value on my "vintage" small home will likely drop.

Ughhh...

Seriously, this is a really stupid plan. It creates more incentive than anything else for people to "trade up" and put their house on the market so they can buy a new house. Isn't "flipping" what got us into this mess?

Hell, if this plan goes into effect as the rumors describe it, I might try and trade up.

Sarcasm on:

Hey... Hold on a minute. Maybe I could "sell" my house to my girlfriend. I could even set the price higher in the sale and pull out some "equity" so that I can join the party (I'm always late to parties) An extra hundred grand for the market where it's at right now might allow me to pay for the house outright in a year or two. What a great speculative opportunity.

Who knows... At that rate, I could buy another house or two for "investment" purposes.

As John Lovitz once said, "Yeah, that's the ticket!"

Sarcasm off

End of the world

Well then.

That hurt.

I'm tired of the government trying to save me by voting no. It hurts too much.

Screw buying gold. I'm buying canned goods, ammunition, gasoline and water.

The next five years of our lives are going to suck.

I just realized I'm pissed off

And it's probably at you or someone that you know.

I have spent my whole life working to make sure that I pay my bills. If I get myself in debt, I PAY IT OFF.

I do not:

1. Buy a house that I cannot afford
2. Buy a second house that I really can't afford
3. Buy a big screen TV, vacations, new clothes or any other daily needs on credit
4. Buy a car that costs as much as some people's homes
5. Spend more than I make

There is a lot more that I don't do, but you get the idea. I've lived pretty much like a monk for the last few years, building for the future:

1. Spending far less than what I make
2. Driving a cheap used car that is completely paid off
3. Living in a house that I CAN AFFORD
4. Paying off any debt that I incur immediately after I incur it
5. Paying more into my mortgage than I owe every month

And of course, there is more there as well. But again, you get the idea.

So I decided that I should be pretty pissed. Because you, or someone you know decided that it was ok to party, take risks and not have to pay the bill.

Guess what. I'm going to have to pay that bill. In higher taxes. In lower value of my stocks. In lower value of my saved dollars. In lower value of my paid down house.

I'm going to have to subsidize the existence of some very lazy americans with some exceptionally messed up values.

Thanks.

Thanks a lot.

But, I have to tell you. I'll get the last laugh eventually.

I'm one of a very few people left that can get a loan for almost any house I want. I can go buy Big screen TV's, vacations and really nice cars for cash. I will survive in a world where most cannot and I'll thrive in a world without free flowing credit.

Will you?