“Why am I being punished for having bought a house I could afford? I am beginning to think I would have rocks in my head if I keep paying my mortgage.” An excellent question that is being asked by many homeowners that have been responsible and ethical in abiding by the contract that they signed.
Saving all those mortgages might be politically desirable, normative economic thought process; but from a positive economic thought perspective, the majority of the mortgages written after 2005 need to fail because they are not sustainable. In addition, I don’t know why anyone would want to pay $3,000/month on a mortgage that is worth $1,000/month at best. That is the moral hazard.
Read an interest post on this mortgage bailout at "The Big Picture."
No comments:
Post a Comment