by Alan Busby

Created on: February 15, 2009

What is the name for the Club or Class of US citizens allowed in on this game? Where do we draw the line at preferential treatment? We can never allow principle right downs on mortgages. It is neither legal nor fair in an free market. There is a whole segment of the population still waiting for home prices to come down before buying and counting on market forces to define prices. Take the example of the $250k mortgage written down to market value of $150k. What if I was the one who wanted to buy that home and was outbid buy the guy who ended up with it and now is going to have his principle written down to below my offer. Why do I not get a chance to buy this home for $150k, since when does occupancy equal preferential right of renewal.

The banking industry's contract with society is what keeps them from making adjustments to mortgage principle. If they let any right-downs happen, where does it end... every one of us will demand a legal right to challenge the entire system. Maybe I was the lucky one for not getting into that house, or the smart one for not believing the street value at the time. But do I get left out of some fantastic government brokered give-away because I was prudent and made good decisions. It will be me and mine paying a part of that right-down for years to come.

There is no guarantee that the property value will even hold at $150k either. These right downs could have further effects on the economy, continued unemployment and recession. Recession is defined by falling prices. A government guarantee in any way will just expose tax payers to unjustified risk. The cost of this whole mess is going to lead to huge inflationary forces in 18 months as it is. Our country has no way to pay for this: the private sector is just not as rich as it once thought it was... most people aren't either and everyone needs to face that reality.

Unprecedented times is not an excuse to lose sight of prudence. The rational for this action is just panic. Panic at losing something that didn't exist in the first place. Equity based wealth comes and goes with the tides of the economy. The greed of the past 5 years has come home to roost and no amount of crying will pay the price. When did a custom luxury home become the norm. What happened to modest homes and modest living. It was replaced by more and more for me, luxury home, luxury car, vacation home... people do not have a right to these things. People need to be humbled by their own mistakes, take their lumps and live inside their means.

Learn more about this author, Alan Busby.
Click here to send this author comments or questions.