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"What’s really important is that law-abiding middle-class citizens are deciding that playing by the rules is nothing but a sucker’s game. "

Thursday, October 7, 2010

The Coming Middle-Class Anarchy

retirement+couple.jpg

Update I, below.

True story: A retired couple I know, Brian and Ilsa, own a home in the Southwest. It’s a pretty house, right on the manicured golf course of their gated community (they’re crazy about golf).

The only problem is, they bought the house near the top of the market in 2005, and now find themselves underwater.

They’ve never missed a mortgage payment—Brian and Ilsa are the kind upright, not to say uptight 60-ish white semi-upper-middle-class couple who follow every rule, fill out every form, comply with every norm. In short, they are the backbone of America.

...

“We’ve done everything right, we’ve always paid on time, and this program is supposed to help us,” said Brian. “We follow the rules—but people who bought homes they couldn’t afford get to squat in those McMansions rent free. It would have been smarter if we’d been crooks.”

Continues:

http://www.gonzalolira.blogspot.com/2010/10/coming-middle-class-anarchy.html

If they were in the UK, I bet they would read the Daily Mail.

Coming to UK shores.

Edited by Money Spinner

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Brian and Ilsa—the nice upper-middle-class retired couple, who always follow the rules, and never ever break the law—who don’t even cheat on their golf scores—even when they’re playing alone (“Because if you cheat at golf, you’re only cheating yourself”)—have decided to give their bank the middle finger.

They have essentially said, F u c k i t.

They haven’t defaulted—not yet. They’re paying the lower mortgage rate. That they’re making payments is because of Brian: He is insisting that they pay something—Ilsa is of the opinion that they should forget about paying the mortgage at all.

“We follow the rules, and look where that’s gotten us?” she says, furious and depressed. “Nowhere. They run us around, like lab rats in a cage. This HAMP business was supposed to help us. I bet the bank went along with the program for three months, so that they could tell the government that they had complied—and when the government got off their backs, they turned around and raised the mortgage back up again!”

“And charged us a penalty,” Brian chimes in. The non-payment penalty was only $84—but it might as well been $84 million, for all the outrage they feel. “A penalty for non-payment!”

Nevertheless, Brian is insisting that they continue paying the mortgage—albeit the lower monthly payment—because he’s still under the atavistic sway of his law-abiding-ness.

But Ilsa is quietly, constantly insisting that they stop paying the mortgage altogether: “Everybody else is doing it—so why shouldn’t we?”

A terrible sentence, when a law-abiding citizen speaks it: Everybody else is doing it—so why don’t we?

It started with the bankers saying it and the taxpayer picking up the tab, surely the bankers can't be surprised when everyone else decides to say fookit as well.

Moral hazard is great.

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They decide to retire and buy a house they can not afford (they needed a mortgage).

Well in my book that is just dumb.

I agree absolutely. How on earth could they have been so stupid?

I bet they were waiting on an inheritance, but the old bugga refuses to peg it, or even perhaps left it to a cat's home.

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"What's really important is that law-abiding middle-class citizens are deciding that playing by the rules is nothing but a sucker's game. "

Thursday, October 7, 2010

The Coming Middle-Class Anarchy

Update I, below.

True story: A retired couple I know, Brian and Ilsa, own a home in the Southwest. It's a pretty house, right on the manicured golf course of their gated community (they're crazy about golf).

The only problem is, they bought the house near the top of the market in 2005, and now find themselves underwater.

They've never missed a mortgage payment—Brian and Ilsa are the kind upright, not to say uptight 60-ish white semi-upper-middle-class couple who follow every rule, fill out every form, comply with every norm. In short, they are the backbone of America.

...

"We've done everything right, we've always paid on time, and this program is supposed to help us," said Brian. "We follow the rules—but people who bought homes they couldn't afford get to squat in those McMansions rent free. It would have been smarter if we'd been crooks."

Continues:

http://www.gonzaloli...ss-anarchy.html

If they were in the UK, I bet they would read the Daily Mail.

Coming to UK shores.

uptight 60-ish playing Golf

What the heck are they doing still paying a mortgage @ 60+ frikkin losers!

Very dodgy type of mainstream posting too with all the 'f' words

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I agree absolutely. How on earth could they have been so stupid?

I bet they were waiting on an inheritance, but the old bugga refuses to peg it, or even perhaps left it to a cat's home.

Don't get it at all. They got a mortgage they can't afford at record low interest rates. And we are supposed to feel sorry? :huh:

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They can afford it, as it is costing 15% of their retirement income. They're just pi**ed by others not having to pay a dime an being fined. Also the negative equity means they're stuck there limiting their options.

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Oh yes, and they are now admitting to trying to rip off the system by saying F*ckit. Well that's excellent isn't it. As a modern day Kant would ask - where would the world be if everyone behaved just like you muppets.

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All their talk about being "law-abiding" seems a bit misplaced. There's nothing illegal about defaulting on your mortgage. It's a business decision (the banks wouldn't think twice about doing something similar) and there are consequences. If you're not prepared to give up your house eventually then keep on paying and stop whinging.

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As a modern day Kant would ask - where would the world be if everyone behaved just like you muppets.

the world is right where it is now... and it's not pretty.

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"We’ve done everything right"

Yeah like buying into a overheated rising market and hoping to cash in on the next generation of buyers being even more in debt to fund your retirement. Really sorry your greed backfired.

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Right now, people are having a little hissy-fit over the robo-signing scandal, and the double-booking scandal (where the same mortgage was signed over to two different bonds), and the little fights between junior tranches and senior tranches and the servicer, in the MBS mess.

Phew thank goodness that sort of crooked stuff doesn't happen in the UK.

Edited by billybong

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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