Posted by
David Andrews on Saturday, February 23, 2008 10:06:13 PM
The American tax payer who makes his monthly mortgage payment on-time and is not in any financial difficulty is about to get a slap in the face by Democratic lawmakers. Senator Christopher Dodd, Democrat from Connecticut, and Barney Frank, Democrat of Massachusetts, have ordered their staffs to come up with a rescue bill for people that are facing home foreclosures or facing an interest rate increase on their Adjustable Rate Mortgage (ARM) loan which they cannot not afford.
http://www.nytimes.com/2008/02/22/business/22homes.html?_r=1&fta=y&oref=slogin
If the Democrats come up with a federal bailout for these individuals that took ARM’s or that have overextended their financial resources, then Dodd and Frank are going to reward those individuals for their failure to live within their means and slap the faces of those of us that have been disciplined enough not to buy more than we can afford. Even the present administration is opposed to any taxpayer bailout for either people who borrowed more than they could afford or lending institutions that made unwise loans during the height of the housing market bubble (as per NY Times article).
Even today, the lending institutions continue to advertise on the television for home equity mortgages tempting people to purchase their equity in their homes when their value of their home may be going down. Credit card companies are still wooing potential customers with teaser interest rates to entice them to transfer their card balances from other credit cards and then continue to charge on the new card rather than pay them down or pay them off.
The federal government should not bailout those that signed contracts to purchase their homes if they can not afford the payments. The American taxpayer that has effectively managed their finances should not be penalized by providing bailout money for those that are irresponsible and live beyond their means.