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Neighbor vs Neighbor

One reason I think the housing bailout is raising so much ire is that it pits Americans against each other. A family on one side of the street might qualify for restructuring, but their catty-corner neighbor might not. They could be in similar financial situations. Or they might have different definitions of "living within your means." The debate in the comments section of this blog captures what I'm talking about.

If you'd like to see an in-depth, calm analysis of the President's housing plan, you might want to watch this from the Lehrer NewsHour last night. Or if you want utter catharsis, Rick Santelli's rant on CNBC yesterday can't be beat. Wow.

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Bailing out people who borrowed money against overvalued houses doesn't helP the HOMEOWNER, it helps THE MORTGAGEHOLDERS. The money just goes through the homeowner to the investors who hold a toxic asset. And if lenders want to renegotiate, there is nothing that will stop them except for maybe waiting for what the government might or might not do. Foreclosure isn't the end of the world, I survived it just fine. What our new leadership is missing is that the current 'economic crisis' gives us all the opportunity to re-draw our life patterns along the lines of he visions we had in the 1970's. Remember "SMALL IS BEAUTIFUL"? STILL IS.

I haven't heard anything about what the housing bubble did and now will continue to do to renters. I rent, I didn't buy because house prices were too high, this bailout puts an artificial floor under housing prices so now they may never correct.

So on top of getting a nice house somewhere, on top of lying on their applications, on top of pushing real buyers out of the market and buying with make believe money, on top of the fact they get to deduct their mortgage from their taxes. I get to bail them out! It's a twofer.

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