More Mad as Hell...
What's wrong with this picture? You scrimped and saved your money instead of taking a mortgage that was too big for you. You turned down the opportunity to live in your own home because you just knew that there was no way that 3-bedroom house was worth $800,000. You even figured the price just had to come down one of these days, so you banked your downpayment and played what you thought was a prudent waiting game.
You're not alone. In the current issue of Business Week, Jim Rogers, former hedge fund manager, author and commentator says:
There are plenty of Americans that saw this coming, that kept their powder dry and have been waiting for the opportunity to take over the assets of the incompetent. Likewise, many homeowners didn't go out and buy five homes with no income. Many homeowners have been waiting for this, and now all of a sudden the government is saying: "Well, too bad for you. We don't care if you did it right or not, we're going to bail out the 100,000 or 200,000 who did it wrong." I mean this is outrageous economics, and it's terrible morality.
I'd add this: those who denied themselves the gratification of living in a spacious home and instead crammed themselves into an apartment are probably feeling a bit angry these days. If the government keeps going on the path they've chosen - bailing out people who bit off more than they could chew; bailing out those who simply paid far too much for far too much house - that anger will build.
Then, at some point, that anger will be expressed. We're already seeing the first signs of taxpayer revolts in some parts of the countries. It starts with those who want their property reassessed now to reflect lower values. They don't want to be paying real estate tax based on what their house was worth last year. Of course, many local governments don't reassess for two years or more. But the taxpayers don't want to hear that.
This may only be the tip of the iceberg. If we go into even tougher times, the expression of anger will be tougher too.
You're not alone. In the current issue of Business Week, Jim Rogers, former hedge fund manager, author and commentator says:
There are plenty of Americans that saw this coming, that kept their powder dry and have been waiting for the opportunity to take over the assets of the incompetent. Likewise, many homeowners didn't go out and buy five homes with no income. Many homeowners have been waiting for this, and now all of a sudden the government is saying: "Well, too bad for you. We don't care if you did it right or not, we're going to bail out the 100,000 or 200,000 who did it wrong." I mean this is outrageous economics, and it's terrible morality.
I'd add this: those who denied themselves the gratification of living in a spacious home and instead crammed themselves into an apartment are probably feeling a bit angry these days. If the government keeps going on the path they've chosen - bailing out people who bit off more than they could chew; bailing out those who simply paid far too much for far too much house - that anger will build.
Then, at some point, that anger will be expressed. We're already seeing the first signs of taxpayer revolts in some parts of the countries. It starts with those who want their property reassessed now to reflect lower values. They don't want to be paying real estate tax based on what their house was worth last year. Of course, many local governments don't reassess for two years or more. But the taxpayers don't want to hear that.
This may only be the tip of the iceberg. If we go into even tougher times, the expression of anger will be tougher too.
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