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Tuesday, November 11, 2008

Meek inherit Earth

Fannie and Freddie are proposing to reduce interest rates and loan amounts to the most troubled loans on their books. If a mortgage owner misses 3 monthly payments and has less than 10% equity in the property, they're eligible for refinancing under the proposed plan. So quick -- tap that equity and stop making your payments.

Payments will be capped at 38% of gross income -- which is great if you've been recently laid off. No income, no payment! It's good to be a failure nowadays.

The rescue mechanisms continue to reward the most risky behavior. I wish I could say it dooms us to mediocrity because mediocrity would look pretty good compared to this. We are feeding the worst managed households and least successful businesses. It makes me wish I'd bought some mcmansion I couldn't afford instead of trying to be a responsible and conservative husband and father.

I know it sounds like sour grapes. It is.

1 comment:

get_some_ny said...

Agree...feel like a failure and an ass for only leveraging up with student loans. So stupid.

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