Re:Bankruptcy, not bailout, is the right answer
by BrandonM on Wednesday October 01, 2008 @12:57AM
(#320392)
I wish I had more upvotes for this post. We are so busy debating the effects on banks loaning to each other that we sometimes ignore the responsible people here. The responsible way to buy a house is to save for it. The realistic way is to save a substantial portion and get a fixed-rate loan that you can definitely afford. It will never be impossible to get such a loan from a standard "Home Loan & Savings" bank, because savings accounts can support such loans (provided, of course, that people are saving, but I believe I established this with the "save a substantial portion" part).
Making low-rate-variable-interest credit less attainable is not a problem, it's a solution to our current problem that has everyone living beyond their means, with an unfathomable percentage of their earnings going to creditors.
You know these folks. They've been saving for a house and watching the market run away from them. Now that prices have dropped, they can afford to buy IF we don't insist on taking their money and giving it to the folks who couldn't handle their existing mortgage keep the house.