Are you guys hunkering down money wise?

[dooleysm]

Why should there be consequences for walking away from a home? I don't see any problem with it. The lender and borrower both knew the rules of the game going in. It was a completely voluntary transaction on both sides. If the bank loses in the deal, whose fault is it?

I don't see why we should be bailing out either side.

Other than a ding in my retirement account, which I'm perfectly willing to wait out for the next 30 years until I retire, the only effect I've seen from the so-called 'crisis' is that gas is getting cheaper.

 

[AlanB]

Apparently there was a change in federal law not too long ago that permits people to just walk away on a mortgage with no consequences, other than a bad credit rating. There was a story about a college professor in So Cal whose townhouse was now worth $100K less than what she owed on.

She had no trouble making the payments, but figured why should she. She was quoted as saying something like (I'm paraphrasing here), "The bank isn't going to fund my retirement. Why should I pay for something that has dropped in price due to their actions?"

Not going after what you said Snow, but what the professor said, and it circles back to one of my pet peeves, personal accountability.

She should pay for the thing, the price she said, because she said she would. It really should be that simple.

I know, I am living in a dream world.

And yes, we are hunkering down. And aggravated with the current scheme of things. Feeling that once again we will end up in the "middle" that, we make too much, are the wrong color, or the wrong sex or whatever to get help, while everyone around us gets support............... Grrrrrr

 

[mjarrels]

I've already heard that 10's of billions from the bailout have gone missing... probably in Swiss banks now!

mark

 

[SnowRidge]

Why should there be consequences for walking away from a home? I don't see any problem with it. The lender and borrower both knew the rules of the game going in. It was a completely voluntary transaction on both sides. If the bank loses in the deal, whose fault is it?

The rules changed when the law changed. In this particular case, I'm not sure if the loan was originated before or after the new law was passed.

I don't see why we should be bailing out either side.

Most people seem to agree with that. I do too, although I would like to see someone go after the predatory lenders that hustled the unsophisticated folks.

Other than a ding in my retirement account, which I'm perfectly willing to wait out for the next 30 years until I retire, the only effect I've seen from the so-called 'crisis' is that gas is getting cheaper.

I think there are going to be a lot of people that aren't so fortunate.

 

[MikePA]

I think there are going to be a lot of people that aren't so fortunate.

Anyone who was either;

(1) Retired
(2) Within 5 years of retirement

and still in equities is getting what they deserve.

 

[SnowRidge]

Anyone who was either;

(1) Retired
(2) Within 5 years of retirement

and still in equities is getting what they deserve.

Care to explain that? The "deserve" part.

 

[LMTC]

Anyone who was either;

(1) Retired
(2) Within 5 years of retirement

and still in equities is getting what they deserve.

Ditto on Snowridge's question. If you really meant "and still in equities should have understood that what's happening has always been a possiblity", I would agree. I'm not sure I can agree with the word "deserve". I am retired from the "day job" after 33+ years, operating a small business, and 40% of what I am worth is in the market. Did I know what's happening now was a possibility? Yes. Was I willing to take the risk for the potential gain? Yes. Have I complained about the crash? No, actually not, though I would like to see any available action pursued against those accountable for wrongdoing, if there was any, particularly with Freddie/Fannie. But did I "deserve" this loss? No, I don't think I could agree with that.

 

[MikePA]

Care to explain that? The "deserve" part.

They were risking what they were either living on, or would be living on within 5 years, by being in equities which is against every financial advice I've ever seen. They bet and they lost. What other verb should I use than 'deserve'?

 

[Doc_Bob]

I hope it never gets to that, but I have to say that I have never been less optimistic about the future.

That is sad.
Bob

 

[SnowRidge]

That is sad.
Bob

I should clarify. I was referring to our country and what may happen to folks in general. We are in good shape ourselves.