There has been a lot of talk lately about the housing market and what role government is going to take to fix the problem. If you are unfamiliar with the problem, basically a few years ago mortgage companies gave out loans with great interest rates, but were flexible rates that were going to go up in 5 or so years. The mortgage companies were willing to do this because they were able to sell their clients accounts to investment companies who were hoping to make money. So what happened is a lot of people ran out and bought homes that were way to expensive but temporally affordable with the low rates. But now that rates are going up, these same people cannot afford their mortgages. Basically people were irresponsible with their money and are now paying the price. Unfortunately for the rest of us, we too are paying the price because the housing market has great influence on the economy. What people are asking is what is the government’s responsibility.
Hillary and Obama have a similar plan. They want the government to spend 30,000,000,000 to bail out homeowners. When McCain was asked about his plan, he responded that he would not do anything. Why should the government bail out people who were irresponsible with their money, he said why should those who were responsible get hurt and have to help those who were not. I still am not a McCain fan, but I must say I like this about him. The problem is can he win an election with these beliefs. Unfortunately too many people feel that the government owes them. McCain has more recently said maybe some aid might be necessary, but only to primary homeowners. Some of the Democratic bail out money was for second homes and investment homes.
These plans represent one of the fundamental differences between the two parties. The Democrats I believe truly want to help people. But the way they want to help is for the government to assume peoples agency. They want big government to make decisions in everyone’s lives as much as possible. They do not give people the credit to think for themselves over what is best for them, but instead want to make the decisions for them. Maybe the majority of people who vote Democratic are not smart enough or are too lazy to make decisions and find it easier to have the government do it for them. By the way this ideology means raising your taxes to pay for all these programs that take care of everyone. The Republicans want small government. Let the state and local government have more a say, but even more important let the people have the power to decide for themselves. Republicans believe we are responsible for ourselves, for good or bad. We know what is best for us, and do not need the government running our lives. Like the Democrats, Republicans truly do want to help people, they just believe the best way of helping is leaving us alone. If we go with the Democrat plan, next time some good mortgages come up, we should all gamble our money and buy. There is no risk, if we fail the government will fix it.
When should government require its citizens to accept the consequences of their decisions. For tests in my classes I require students to arrive with a blue book. In every class and for every test I will have at least one student who fails to bring a bluebook. They always ask if they can write it on regular paper, and every time I give them the same answer of no. They know the rules, and had plenty of warning, yet chose not to care. We are raising a generation of kids who do not have to worry about consequences of their actions. Why should they, the last two presidents have used drugs, it did not hurt them. The government wants to bail people out of stupid mistakes. In most classes the professor would allow them to turn in a test on normal paper. I believe I am here to teach the students, and not just about history. It is a hard lesson to learn, failing a test, but hopefully they will learn it. If the government took the approach that McCain is suggesting, maybe we the people will learn a lesson. It may be hard lesson to learn, but maybe, just maybe we will learn it and better ourselves and the future generation. Oh and by the way, less taxes.
Hillary and Obama have a similar plan. They want the government to spend 30,000,000,000 to bail out homeowners. When McCain was asked about his plan, he responded that he would not do anything. Why should the government bail out people who were irresponsible with their money, he said why should those who were responsible get hurt and have to help those who were not. I still am not a McCain fan, but I must say I like this about him. The problem is can he win an election with these beliefs. Unfortunately too many people feel that the government owes them. McCain has more recently said maybe some aid might be necessary, but only to primary homeowners. Some of the Democratic bail out money was for second homes and investment homes.
These plans represent one of the fundamental differences between the two parties. The Democrats I believe truly want to help people. But the way they want to help is for the government to assume peoples agency. They want big government to make decisions in everyone’s lives as much as possible. They do not give people the credit to think for themselves over what is best for them, but instead want to make the decisions for them. Maybe the majority of people who vote Democratic are not smart enough or are too lazy to make decisions and find it easier to have the government do it for them. By the way this ideology means raising your taxes to pay for all these programs that take care of everyone. The Republicans want small government. Let the state and local government have more a say, but even more important let the people have the power to decide for themselves. Republicans believe we are responsible for ourselves, for good or bad. We know what is best for us, and do not need the government running our lives. Like the Democrats, Republicans truly do want to help people, they just believe the best way of helping is leaving us alone. If we go with the Democrat plan, next time some good mortgages come up, we should all gamble our money and buy. There is no risk, if we fail the government will fix it.
When should government require its citizens to accept the consequences of their decisions. For tests in my classes I require students to arrive with a blue book. In every class and for every test I will have at least one student who fails to bring a bluebook. They always ask if they can write it on regular paper, and every time I give them the same answer of no. They know the rules, and had plenty of warning, yet chose not to care. We are raising a generation of kids who do not have to worry about consequences of their actions. Why should they, the last two presidents have used drugs, it did not hurt them. The government wants to bail people out of stupid mistakes. In most classes the professor would allow them to turn in a test on normal paper. I believe I am here to teach the students, and not just about history. It is a hard lesson to learn, failing a test, but hopefully they will learn it. If the government took the approach that McCain is suggesting, maybe we the people will learn a lesson. It may be hard lesson to learn, but maybe, just maybe we will learn it and better ourselves and the future generation. Oh and by the way, less taxes.
5 comments:
Give the starving people food and they will eat for a day, but teach them to fish and they will eat forever.
I'm not a huge McCain fan either, but I feel the same way he does on this issue.
What was it that one of the GAs said, evil disguised as tolerance. I kind of relate this as dependence disguised at charity.
Cause and effect....it sure doesn't mean what it use too.
President Monson said it on Sat night.
I agree with what you say. The bottom line is that markets fluctuate. They can't always be on the upswing. The market will eventually adjust and there won't be thousands of dead and homeless lining the streets in the meantime.
Great post, James - mostly because it's actually something I understand...Ed and I are finally trying to become real estate experts as we hope to buy our first home in the next year or so. It helps he's in finance, but it's a little more work for me to stay on top of things. Buying in the DC area is extra complicated as there is speculation over how the in- and out-flow of a new administration may affect things next fall. Anyway, I know that's not really what your post was about. I'm with McCain on this one for sure.
If you don't try and do that fancy financing and stick within your means, keep a savings, and get a fixed rate then you should be able to weather any storms. I don't feel bad for people that purposely bit off more than they could chew. We just bought a house and we made sure that we could afford it with what we make now, not what we will be making in August when it is done and we will have at least 3 months of mortgage saved. I am not a McCain fan (don't let this get back to my dad) but I do agree with him on this one.
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