Not just bad, but terrible...
Why should the federal government bail out people who cannot afford their homes? Who bails them out next year and the next and the...
Look, people who can afford mortgage payments will pay them. Those who can’t won’t be able today, next month, next year or ten years from now.
Face the music. Get on with your life. Don’t be so gullible next time. Chalk it up to life experience.
Also, raises a spectre of chain reaction. If one is scraping to make payments and pay the mortgage, and his neighbor is at risk of default and gets a check from the government - what’s one to do, but apply for the same treatment or feel like a fool.
This is just a lame-brain idea, and since Bill Gross is not at all dumb and understands this will not happen, it’s simply designed to raise the noise level and sense of panic to try and make Fed lower the Fed funds rate, so he can make money on his bonds.
Precisely.
I hope that happens. Bad behavior only stops when people are truly held responsible for their actions. As I tell my adult children, “Your financial problems are not my financial problems.” Basically your debt is your debt. That was advise I got from my dad decades ago. It set me on the right path.
Because many people wouldn't be in trouble if the Federal Reserve hadn't kept interest rates too high.
What do I get for being able to afford my home/pay my mortgage?
bttt
So after taxes rise so that the Federal Government can afford to bail out people whose wages rise insufficiently to pay terrible mortgages, who bails out citizens who cannot afford their taxes, food, and housing expenses simultaneously even if their incomes rise? This sounds like a way to get aboard an endless cycle, and only the banks win.
START
Some people get unreasonable mortgages from banks.
Banks threaten to foreclose on people who cannot pay mortgages.
Federal government pays some people to pay banks for mortgages.
Federal government raises taxes on ALL citizens.
Citizens cannot afford to pay taxes, food, and previously “affordable” mortgages; many employers cannot pay both taxes and wages to citizens, who consequently lose their jobs, making their mortgages unaffordable.
RETURN to START and REPEAT.
Then we have the ancillary effect of people purposely getting unaffordable mortgages because they know that the Federal government will give them money to pay that mortgage. If this phenomenon happens with sufficient frequency, then we effectively untie the nominal price of housing from the costs of obtaining it to many/most citizens. This dichotomy currently afflicts the medical industry, where people get health care, but employers and government agencies (mostly) pay for it. This disconnect worst afflicts those somehow ineligible or unable to pass their cost burden to a third party.
We do NOT want to go down this road, folks; followed to its logical conclusion, it leads to “socialized housing,” wherein everyone resides in the “projects,” howsoever the government tells them to live.