My dad sent me an article today which contained this article.
Obviously, we are not going to stop paying our mortgage. But this article does sort of highlight one of the downsides to bailing some of these folks out...
By the way, as a person who has been involved in the purchase of 2 homes, I know the following statement made by PE Obama is just not true.
"In a campaign fact sheet, President-elect Barack Obama says he ' "recognizes that the real victims in the subprime mortgage crisis are not the lenders, but the millions of borrowers who followed the rules and whose only crime was taking out mortgages that lenders told them they could afford." '
If you have ever applied for a mortgage, you know (or should know) you will get pre-approved to buy much more than you can afford. I don't really know why this is. Maybe lenders don't take into account ANY monthly payments that you'll be making, including a power, gas, or water bill, not to mention any car or credit card payment you may owe each month OR any tithing or charitable contributions you may make.
All that to say, I don't believe the lenders OR the borrowers are victims. Just because you don't know what you can or cannot afford, you do not become a victim. Even if it does make you feel better to think that way.