Crazy Borrowers Win! Everyone Else Loses.

Patrick,
I have read your webpage for 2 years.  Recently a Washington Post article:
Disastrous Housing Bill Set to Become Law (washingtonpost.com) link had the
following comment by a reader who goes by upsetinVA.  It sums up everything I've
felt as a young married person who showed restraint during this whole circus
housing bubble.  I'm thinking of posting it after every major news story I read
if there is an opportunity to post my comments.  I suggest everyone else do the
same, it could lead to something bigger!

Joshua

upsetinVA wrote:

    Open letter to Joe, Okay, so you were right! I thought you'd lost your mind
    when you sold your modest house next door in 2005 and bought a $1.2M mcmansion,
    with no money down. I thought you were crazy when you used the proceeds from
    the sale of your house to go to Europe, buy two expensive vehicles, new
    furniture and put in a swimming pool in your new house. In the meantime, my
    wife and I pinched our pennies, socking money away in our 401Ks, saving for a
    vacation and continued to drive our ancient cars. I felt vindicated when the
    real estate market collapsed and your mcmansion fell in "value" to
    $800K and the interest rate on your ARM went up to 10%, while my fixed rate
    stayed at 6%. 

    My, how the tide has turned! Thanks to our elected officials, I will be helping
    you keep your mcmansion with the granite countertops and all the other
    trappings of wealth. You'll get a reduction on the principle of your
    mortgage and a lowered interest rate. The only way my mortgage principle will
    go lower is if I pay it down; and, of course, interest rates have gone up so I
    can't refinance for a lower fixed rate. By the way, your old house went
    into foreclosure last month. I don't think the folks who bought it at that
    inflated price ever meant to live in it and when they couldn't find a
    renter to cover the cost of the mortgage, they decided to let it go back to the
    bank. Of course, that meant the value of my house dropped quite a bit more.
    Don't worry though -- Since we've been diligently paying down the principle
    on our house, we still have some equity left. 

    I sure do wish I could get the principle on my house magically reduced and
    (prayer) a lower interest rate too! That would give me some financial relief
    -- paying for my daughter's college tuition and health insurance would
    certainly be easier. (She turned 22 this past May, so I've had to pick up
    the tab for her health care.) Since I didn't overspend, can afford my
    mortgage and saved my money, I won't qualify for those "breaks" my
    tax dollars will be funding. 

    Speaking of those tax dollars, I've been writing letters to our elected
    representatives to fund new roads and rebuild our crumbling infrastructure.
    Have you seen the cost of college tuition lately? How about health care, the
    cost of food and I don't want to even think about gas prices! Too bad our
    tax dollars will be paying for your mcmansion. If projects to help the rest of
    us are to be funded, our elected officials will have to raise our taxes, and
    frankly, I'm just not "feeling" a tax increase. Our elected officials have
    mismanaged too much of my hard earned money, already. 

    In addition to giving you breaks on your mcmansion, I did hear that the new
    Foreclosure Prevention Bill will "put a floor on the price of housing".
    I guess my son, who just recently graduated from college, won't be able to
    buy a house after all. He's staying at home with us and saving his money.
    We'd hoped that house prices would continue to deflate, reaching a level
    commiserate with incomes in this area. He's making a nice salary, but still
    can't afford the prices. Yes, I do understand that first time homebuyers
    will get up to $7500 in breaks, but read the fine print, besides that small
    amount won't even cover closing costs.

    Well, Joe, I just wanted to let you know you were right! I was dumb for playing
    by the rules, saving my money and max'ing out on my 401K. I should have
    taken your lead, purchased a mcmansion and spent every penny I earned. Think of
    all the fun I could have had! Nice cars, granite countertops, furniture,
    clothes, vacations...wow...and, the "government" picking up the tab.
    I can't wait for the next bubble. YOU ARE THE MAN!