Joe Biden Proposes that Government Should Be Allowed to Change Outstanding Principal Balance on Mortgages

Article Submitted by: Herman Kline
The Economy


I like Joe Biden. I think he is real, but I couldn't believe what he said in the first half of yesterday's debate.

 

Submitted: Oct 3, 2008    Views: 172    Comments: 3    Likes: 1   


At one point between the 20th and 30th minute of last night's vice presidential debate, Joe Biden was talking about the economic crisis.  He ended his response by saying that the government should change not just the outstanding interest rate where a borrower had bought a home that they couldn't afford, but also should have the ability to change the outstanding principal of the loan (or the mortgage balance).

Now, I am entirely in favor of doing everything possible to keep people in their homes, but we are speaking about grown ups who knowingly and consciously entered into arrangements to purchase a home.  It is a stretch to say that their financial illiteracy caused them not to understand the mortgage terms, but a much greater stretch to say that they did not understand that the price that they were paying was high.

Where is the accountability in our system?  How does the government propose to compensate those who rented instead of purchasing?  Or, those who purchased smaller homes and lived within our means during the housing bubble?

The Democrats are promising the world.  They are making more promises, while they should be making fewer.

If we go in this direction, then I fully hope that Barack and Joe will indemnify me for all of the mistakes that I have made in my life.  My software company failed after I sunk a fortune into it.  I have gotten killed over the last year in all of my stock market investments.  I spend a fortune on a divorce.  My large SUV has devalued dramatically since I purchased it because gas prices have spiked up. 

I am waiting for Barack and Joe to cut me a check to make me whole.  :)




Related Articles:



1

Email this story Email to someone | Print Story Print Content | Add to reading list

Comments Received:

Sam Cass
Sam_Cass

In one sense I agree but on the other hand, I'd rather allow everyone to adjust the principal on their mortgage as opposed to allowing banks to "adjust" the assets on their balance sheets.

Posted: Oct 3, 2008

Wary
(Unregistered)

I was floored when I heard him make this comment. As you so well put it: Where is the accountability in this ticket?
Everyone that is in danger of losing their house today either bought high because they expected 20-30% annual increases in home prices to continue, or they refinanced their homes to take out equity and spend it, often in extravagant ways. Meanwhile, chumps like me kept a more conservative house and mortgage.

Now Obama wants me to pay for the party. It we reduce the principal on these loans then there is no possibility of the cost of the bailout package being reduced when the economy strengthens as it inevitably will. This type of thinking borders on communism, and I for one am very scared.

Posted: Oct 3, 2008

thedorightman
(Unregistered)

Oh it's so easy...the little old lady figured it out; all you have to do is shoot in a couple of flesh wounds [like in 'Nam.] and Fanny pays off your mortgage....now where did i put that pistola?

Posted: Oct 3, 2008



Add Your Comments:

Your Name:

Spam protection control:


© Copyright 2008 Herman Kline All rights reserved. Herman Kline has granted BestCashCow.com, LLC non-exclusive rights to display this work on Bestcashcow.com.

Financial products of all nature bear inherent risks and this website is not a financial advisory service; it is a forum for users to share and to compare notes and observations on financial publications. The website provides, free of charge, the technical and logistical apparatus and the medium for users to share and to publish financial information and to comment on publications. As such, the website’s operator can not and does not take responsibility for information, observations or opinions of any sort or nature provided by third parties with whom it is not affiliated who use the website to publish, to comment or as a means of solicitation. Users are specifically warned against following any advice related to specific instruments, including, but not limited to, equity securities, that may be provided by other users directly on this site or on web pages to which other users have provided links on this site. BestCashCow.com can not and does not check or verify the qualifications and credentials of users who publish or comment on this site or on linked pages. Users should seek personalized advice from qualified professionals regarding all personal financial issues and evaluate the risks and applicability to their own circumstances of each financial product discussed regardless of who the publisher is or purports to be. Should you, through your use of this site, identify an individual or organization purporting to offer personalized advice, you bear all responsibility to ensure that the individual or organization has the qualifications that they may represent on the website, and that their advice is appropriate for your circumstances. On certain webpages, BestCashCow.com provides information related to rates on US-based savings accounts, CDs, short-term government bonds, and other US cash equivalent securities, also free of charge to internet users for their independent use. The accuracy of this information is not guaranteed, and the information, like all other information on this website, should not be construed to provide investment advice, nor to endorse a financial product of any sort.

© 2007 BestCashCow.com, LLC. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy.