Dear Bank of America et al,
During boom times when you wouldn't lift an eyelash to question the destruction of the US economy by the "free market", I raised three children in the same house in less than 2000 square feet. I didn't buy a bigger house here in Miami, where so many homes purchased after 2001 were speculative investments based on inevitable price appreciation. I didn't buy into the Cool-Aid, but I-- like every other US taxpayer-- have been dragged into the incredible morass of those who did, encumbering my children's generation with trillions in debt.
I look at mortgage modification this way: I am being penalized again and again for not having taken the risk that the de facto standard of fiscal prudence would be free money. If I had participated in bad economic decisions that helped plunge the economy into a time-release depression, I would be have been rewarded. That doesn't seem fair to me or my family who lived in the same 1800 square feet for more than 15 years.
If the government and you--virtually indistinguishable-- can find a way to give tax dollars I've paid to other homeowners, and if you can find a way to print money to buy trillions of dollars of mortgage securities whose origination already shed off billions of dollars in commissions, fees, stock options and executive compensation to your executives, to Wall Street enablers, to the engineering cartel to real estate attorneys and on and on, please find a way to give me some of that free money too.
Maybe I shouldn't be so polite given my experience. But I'm waiting for the tea baggers to stop running around with their hair on fire and to start beating a path to the right doors. Yours, truly.
16 comments:
Tell your story to Rep. Erik Fresen who needs 2,609 square feet to house 4 people and had foreclosure proceedings filed against him in August 2009. Be careful, I suspect he needs a loan.
Gimmy I share your pain (I mean it) but its the Bush, Obama and congresses fault. YES BOA acted irresponsibly (as did apparently Erik Fressen, maybe he can get hired to collect Cesar Caraza's phone bill), but who decided they were "to big to fail" or AIG or GM. No corporation or individaul should be deemed to big to fail if BOA, FNMAE or GM, lent irresponsibly, gave terrible service, produced crap or over compensated their executives and employees then they deseve to fail.
The government should have left it to the banks and the folks who borrowed from them to work it out amongst themselves. The bank may have tried to raise its fees and rates to compensate but another bank that acted responsibly during the boom (or a new one) would have absorbed the better ilk of BOA customers or BOA altogether had it FAILED (God Forbid!). No skin of your nose or mine.
But "Stimulus" "Tarp" and Healthcare "Reform" will insure that this malaise will last a good long time.
A better solution would have been a payroll tax holiday (for 1 year) and cuts in government spending to cover the holiday and beyond, Dems are wrong in tha we cant spend (creating debt) our way out, Republicans are wrong in that they only talk tax cuts, but always forget to cut spending.
Personal vendetta= I hate tea baggers because not only are they very very stupid, but also they may ruin our Country. Of course it is the nasty republicans behind them and whipping them up. If anyone will be hurt by all this it is me as they are already taking far too much money from me now. That is my Govt trying to help the whole world.
If I had my druthers, I'd rather be living in a home that was bought prudently, than trying to fight off a foreclosure and get a mortgage modification.
Wait a minute I am.
Trying to claim victim status with this blog is a bit much.
I couldn't agree with you guys more. I am totally disgusted by all these actions the banks, the irresponsible borrowers and the government took on my tax dollars. I feel being punished too by not buying a house I couldn't afford then living in it for free for year(s) without paying a dime and still buying luxury goods. I am not going to vote for any republicans or democrats.
There is nothing like being a renter, whom the obama administration contines to foresake. Program after program is enacted to keep people in over priced, ill financed homes. Essentially using renters tax dollars against them.
During boom times most free-market advocates were all noting how the government was creating a very big mess in the economy that would have dramatic ramifications and lead to a possible depression. I imagine you were probably thinking that it was how the "new economy" worked.
Being a free-market advocate, I was questioning when the government-created housing bubble would pop and how serious it would end up being.
Thinking back it seemed like I started making money from this bubble in 2003 when it really took off. The people who made money from this bubble such as myself put the majority of the cause flatly on government causes.
Yes, but your house purchase decision wasn't what was driving the economy (apparently that wasn't good enough anymore)...and unfortunately your good sense, moral and ethical values - are rare birds indeed, in upper echelons.
I would think 8 years of Bush-itis should have prepared us for that.
Those caught with their pants down forgot their manners (or the service of a good belt)...apparently size matters!
It is the numbers your situation represents...I believe that's where the true story lies. Those numbers won't, and shouldn't keep quiet. I think we'll hear lots more in years to come.
I love this blog and the work you all do to educate,enlighten and humor us. It's 1st class and clearly alot of work and time and effort is spent on EOM. That said, why can't I get past this statement "I raised three children in the same house in less than 2000 square feet" - I understand the point of your letter and feelings about what's going on, but this simeple one line sticks like a thorn. To me, what has been truly wrong with the direction of the country my entire life is bigger=better. Jumbo cars, Jumbo Jets, Jumbo houses, Jumbo TV's, jumbo jumbo jumbo - it's appalling and stupid and costly on many many levels.
Your post begins: During boom times when you wouldn't lift an eyelash to question the destruction of the US economy by the "free market".
Pray tell, where was the 'free market' in all of this? You mean the SEC?, Or maybe The Fed of Greenspan and Bernanke? Or maybe the Congressional oversight of Barnie Frank? Or the Senate oversight of Chris Dodd? Fannie Mae? Freddie Mac? Yeah, it was the "Free Market" alright. So lets put more politicans in charge.
Give me a break. For the same reason we got the politicians of the last twenty years is the same reason we are in this mess. We, as a society have gotten what WE deserve. Trying to control the 'free market' is what has gotten us into this mess. And made it even worse. Go ahead, I can hear the screams already. However, you it is not a debate you need to win, it is an immutable truth of economics, nay, of human nature you are attempting to overturn: Man trys to be God and fails miserably (if not spectacularly).
My humble suggestion: Read about Copernicus and see how he came to his theory and then think how it applys to today's situation. But, then again, I must be an idiot because I happen to think that no one is really smart enough to control the marketplace.
We need to stop acting as spoiled children and grow up. In other words, "Cowboy up".
I feel your pain, but at least you have a house. I live in San Francisco, where my husband I earn a very good salary but have been renting and living in a 1300-square-food two-bedroom apartment for the past six years with our two children. Because we both come from working class-families who could not help us with that initial down payment, and we have been trapped by enormous college student loans for years (why aren't those tax deductible? But that's another story), we were never able to get that down payment to buy a house in our very expensive city. But our friends took incredibly stupid risks, buying over their heads and now suffering b/c they can't pay the mortgage. Now that we finally have our down payment, prices still haven't come down enough for us to buy a decent home in a good neighborhood, but the government doesn't seem to care that sellers who paid $200,000 for a house less than seven years ago are still pricing their homes at $1 million today. Meanwhile, those who are under water are receiving benefits. I know, I know, we should move out of the city. But is that what America has come to? Soon only the very, very wealthy will be able to live in our major cities, which is such a shame from a diversity standpoint.
Gimleteye has hit the nail on the head. Where is our award for being responsible? We all know what happens when one is awarded for doing the WRONG thing, so why does the government continue to bail out these people? I'm raising 2 kids (now high school aged) in a 1000sqft home next to a busy california freeway, sacraficing comfort and paying off my slumlords property in hopes that some day I too can be a homeowner. Affordablity in my book means somewhere around 200K, not the 500K they are getting for these dumps. 100K salary in California (I'm sure Miami as well) doesn't get much, but I would hope on day it will get us something. Until that day comes, myself and the other 3 responsible folks here in California will have to wait. As for the rest of you greedy pricks that helped ruin the world economy due to your shortsided, "keep up with the Joneses" ill logic, Please don't take any more loans, even if the government hand one to you on a powered-laden mirror. If you do, you will get "teabagged" when you are asleep.
I too have been a responsible investor (conservative)for many years. The depreciation of our currency is ruining the value of my assets, and savings. These bailouts of irresponsible speculators including homeowners who took risks beyond their reach, is not the way to fix the economy. STOP THE BAILOUTS, let the bankrupt go bankrupt is the answer, whether it is an institution or private. Stop the devaluation, stop the printing press. Where is my reward for being a genuine investor? Who is going to remburse me for the invisible loss I've taken because of the bailouts, and devaluations, etc..?? I'm sure there must be a formula to figure out the ratio of loss( to be reimbursed to responsible people, and businesses) I've taken only because of other people's stupidity.
Miami exile...I don't get your point. Please elaborate.
Hmm..the point was sq.feet should have nothing to do with the story and the way it's stated, to me, makes it sound like raising a family in 1800 sq.ft. is some kind of hardship. -
1800 sq. ft is hardly a McMansion. In Florida terms that is a modest sized home. I think it was used as an example of not being greedy with square footage at the expense of sound family finances. I live in 1,500 sq and I got the point. In NY's Southampton, you were not allowed to build a home under a specified sq footage -- at the time I think it might have been 1800 sq ft. Can't recall.
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