Agreed! I just read the article with his quote (didn't have time to watch the video)and a 1 minute read helped me to understand the problem better.

A bit of a tangent, but: my wife and I have almost never bought on credit (save for cars, even our current house) - preferring to pay cash, and accept a "lesser" life style. I have taken some kidding about this over the years since we live a modest lifestyle, but in recent years some family and friends finally understand our odd viewpoint on earning and spending.

We've done the same. And now we regret it. Our pension funds and investments have tanked in the various downturns. Well, I guess we can handle that.

Our friends bought million-dollar homes they can't afford and now Obama wants the banks to renegotiate and write their loans down. And those who invested conservatively, like myself, get to bail out the banks and, along with them, my profligate friends.

IOW you and I are the suckers in this game. We can be smug about our "wise" choices, but the way this game is playing out, anyone who tried to be fiscally conservative is a loser, and the winners are the spendthrifts.

I'd like to say more, but I've got to go to the hardware store and buy a pitchfork and some torches while I can still afford them.

I hear you, but I would still rather have a less expensive paid for house right now than an expensive home that the government may or may not artificially reduce the interest payments on.

"Reduce the interest"? No, they're going to reduce the principal on underwater home loans!

But only if the banks say you qualify. I know someone going through the process (last 5 months they've tried) and it isn't fun, or beneficial at this point.

Don't buy the hype. It has really stressed them, and despite needing that help (value has fallen below their purchase value, that's why they're underwater) they expect to be refused because of how they've been treated.

Bummer, I didn't know that. That is just plain wrong.

From what I understand of it, the program is for folks who've gone upside down in their mortgage because of inflation and falling real estate value—not bad/underwater loans.

I've managed to survive without debt thus far. I still have a credit card, but always paid in full for everything that I bought on it. Just watching friends and family struggle with debt is enough to keep me far from it.