Stop the Subprime Bailout
An interesting take on the subject of mortgage bailouts.
Perhaps the best reason NOT to bailout mortgagees is that the folks who bought at the top of the housing market - a market driven to new heights by crazy lending and outright fraud - will be better off walking away rather than trapped in loans that are potentially hundreds of thousands of dollars underwater. 30 years of payments on $100,000 overpaid costs around $600 a month. More than many people put into their 401k.
If I entered the data correctly, that $600/month would be $300,000 in retirement savings after 30 years. Retirement Planner - MSN Money Why do we want to help people stay in overleveraged, depreciating "investments" that they cannot afford?
Tuesday, August 14, 2007
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