In the United States’ ongoing efforts to turn the world into a padded room where everyone only says nice things and nobody can hurt themselves, our benevolent government is close to reaching an agreement with major banks to freeze rates on adjustable rate mortgages for people who can’t pay.
So hey, free houses! Under the agreement, the people who are eligible for the rate freeze will most likely be those who were able to pay under the previous rates, but aren’t able to now. Moral of the story? If you can’t pay for your house, just don’t! Because, you know, if you try to make your payment, your rates might keep going up, like it said they would in that mortgage doc you didn’t bother to read. And you won’t get bailed out.
The acrobatics our government and the financial industry are going through right now to avoid a total
market collapse is making my head spin. The shortsightedness and drug-addict behavior of the equity markets continues to amaze me. It will be interesting to see how this unfolds. My gut says that they won’t be able to keep up this precarious balancing act for much longer, and we’re in for some fireworks soon. You can only fly in the face of common sense for so long.
