“buying overpriced property during the bubble or refinancing during the bubble, then watching the value get cut in half or in third. It is still irresponsible behavior and should not be bailed out.”
Not irresponsible, just a gamble. It always was a gamble and, whenever we choose to gamble, we need to ensure we can afford to absorb even a complete loss of our investment. This is the place from which I think Free America52 is coming, that is, I’m not demanding a solution to my problem but if one is available, I might be willing to take advantage of it.
My problem isn’t with folks who try to make the best of their situation, but the notion, fostered by Dems in particular, that the housing market should have private gains but public losses. I have no respect for those demanding that public monies be used to bail them out when they were perfectly willing to keep whatever winnings they got from the investment. If it was to be private gain, it should be private loss.
You are right, it is not irresponsible to overpay. I argued with people here in 2005 about that, but didn’t call it irresponsible, just inadvisable.