Let’s reward bad decisions and predatory lending
President Bush announced the subprime mortgage rescue plan today. It will freeze those subprime rates for the next five years!
That means the guy who signed for that 3% loan is set for the next five years, while I continue paying 6.7%. I’m not the sharpest crayon in the box, but somehow that just doesn’t seem fair. Why can’t I have 3% for five years!?
Also saved from some expensive foreclosures are the predatory lending institutions that issued the subprime loans. (Presumably the sales reps who promoted the loans are long gone, fat commissions in hand.) So, in effect, the lenders are being rescued/rewarded too. Frankly, I think they deserve to lose their shirts for preying on unwary buyers.
Of course I’m glad I’m not embroiled in the whole mess, aside from watching my home’s value continue to sink while the nation’s economy slides toward the brink. I sleep a little better at night, knowing the sheriff won’t be pounding on my door tomorrow with an eviction notice. But I’m still angry.