Tag Archives: bad decisions

The More Relief You Give To Those With Troubled Mortgages…

…the more you soak taxpayers. The more relief you give to those who’ve made bad decisions, the more you take from those who made responsible decisions. The more bailouts you give, the more you reduce moral hazard, aka the incentive … Continue reading

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Will The Federal Government Bail-out Irresponsible Home Owners

The Barack Obama administration is looking at ways to subsidize mortgage giants writing down mortgage principal. Republicans say this reduces moral hazard. Where are the incentives to be careful if your bad decisions are subsidized? The WSJ reports: Sen Bob … Continue reading

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Mortgage Lending Hits Lowest Level Since 1997

Mortgage lending is expected to decline further in 2012. And as for home prices? They are currently at 2003 levels. There are many factors that account for the decline in mortgage lending. First, people without jobs can’t generally buy homes. … Continue reading

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Will The Federal Government Make A Good Landlord?

With hundreds of thousands of Americans defaulting on their mortgages, there’s been increased demand for rentals. So while home prices are going down for the past four years, rent is going up. Fannie Mae and Freddie Mac have thousands of … Continue reading

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The Emergency Homeowners Loan Program Bails Out Unemployed Home Owners

The Emergency Homeowners Loan Program was passed as part of the massive financial regulation passed in 2010. Up to 30,000 unemployed or underemployed homeowners can get forgivable loans to pay their mortgage. It’s sure nice that the government has so … Continue reading

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Help For Homeowners At Risk Of Foreclosure

Have you bought more home than you can afford? Are you at risk of foreclosure? Well, Uncle Sam may be willing to bail you out of your bad decisions, thus encouraging more people to make more such bad decisions. The … Continue reading

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Homeowners In Distress – Doesn’t Your Heart Bleed?

I fail to be heartbroken that millions of Americans bought more home than they could afford and that they are now struggling to stay in it. Why should I care about people’s bad financial decisions? Why is the decision to … Continue reading

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Few Helped By Obama’s Mortgage Modification Program

This made no sense to me. Why should the government reward those who bought more home than they could afford? Why reward losers with money from the general public? Why subsidize bad decisions? CBS News reports: Two years ago, President … Continue reading

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Do You Still Want To Use Taxpayer Dollars To Subsidize Mortgage Modification?

I sense that these subsidy schemes are running out of money and enthusiasm. Why should we use taxpayer money to subsidize those who’ve made bad decisions and bought more house than they can afford? Whatever happened to moral hazard? If … Continue reading

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Should The Government Provide More Mortgage Relief?

When you ask the government to intervene in the mortgage market to bail out people who bought more home than they could afford, you are reducing moral hazard (the price people pay for bad decisions). You make the free market … Continue reading

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