Innocent Victims of the Credit Crisis
November 26, 2008
– Comments (8)
is this the best reporters can do?
Among those benefiting from lower rates was James Ramsey of Aurora, IL., whose mortgage rate, currently 5.625%, was slated to increase by as much as a percentage point in January. On Tuesday, Mr. Ramsey locked in a 5.5% rate on his $180,000 mortgage. The refinance "is going to let me pay off a couple of credit cards really quick," he said.
The Davises, who bought their home in July, needed help. They haven't been able to sell their old house yet and so are renting it out, but for less than their mortgage payments. All told, housing costs are eating up nearly half of their after-tax income, Mr. Davis says. The couple has stopped eating out and putting money into retirement accounts; they have also taken on second jobs to keep afloat.
Has any politician in this bailout had the guts/smarts/foresight to suggest that what we need more than anything in this country is personal finance education? If you put yourself in the position of going bankrupt when probably events occur, you are not a victim of anything but your own ignorance. Maybe, just maybe, people need a dose of smarts, responsibility, and restraint to go along with their free, taxpayer-funded money. Right now, all we're training people to do is keep making the same stupid bets, then wait for Mr. Gobnmint to pick their neighbors pocket and hand the proceeds to them.
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