Friday, October 03, 2008

The Bailout

So, I'm pretty disappointed in this whole bailout thing. I'm sure you are, too.

My mom sent me a link to an article about this that I thought was really compelling. It's from the New York Times, and it was written in 1999.

The standards of mortgage qualification were lowered so more low-income and minority families could get home loans. This is wrong on so many levels, not the least of which is changing the rules because of someone's skin color.

What ever happened to wanting to be seen for the content of character?

If someone has bad credit, they have bad credit. Whether they're black, white, or poor.

This whole disaster could have been avoided if we'd just kept some high standards. Lowering standards in this situation only served to hurt the people they said they were trying to help.

And now, it looks like we'll all pay for it.

BTW, from what I can tell, the House still has to vote. An article I read from this morning said that more and more "converts" were coming out in favor of the new bill. Still, it's not too late to write to your representative encouraging a free market solution such as Dave Ramsey's Common Sense Fix. He has a link to the House's site where you can send a message to your rep.

1 comment:

  1. when we lost our house, due only to it's value dropping by so much that no mortgage company would refinance us- we were told by SEVERAL advisers and companies: "It's no big deal. Once you lose your home you will be forced into bankruptcy. After that you will be able to secure a mortgage, no problem because they'll know you have to pay it, there will be no way out..." Though I'm not certain if this is still true, all things considered- alarming isn't it? we were mortified...

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