A lot of factors contributed to where we are now.

The lending (predatory or not) industry was offering loans to people who never should have been offered them. Credit card companies were extending huge lines of credit to people who they [should have known] would have to struggle to pay it back if they could.

In some aspects the government is hellbent on protecting us from ourselves - seatbelt and helmet laws, warnings on ciggs and alcohol, drugs are illegal. And in other aspects (such as finances) being irresponsible is basically encouraged.

People can't be trusted to do the right thing by themselves when it comes to seat belts, helmets, smoking and drinking but they can be trusted to handle finances?

The consumer is at fault for making poor choices, not reading the fine print and being generally stupid. The government is at fault for not putting a stop to $500,000 mortgages being offered to people who make $40k to begin with. It doesn't take a moron to see that even if the buyer can make the interest only payments at the current rate, there is no way they'd be able to make the payments when it adjusted into principal and interest payments, or if the rate went up.

I'm conflicted if there should be a government bailout or if the people who didn't read the fine print, who didn't understand what they are getting into should have to deal with the consequences. I do think that this type of lending will not happen again. I do think that we're in for worse times before it gets better. I do not think that this stimulus package will do anything but boost spending for 2 months.

We're going to see more mall stores, more Starbucks (why did we need one on every corner?), more hole in the wall places going out of business. I know I am making more of an effort to support the places that aren't corporate owned when I do spend money. But the times I spend money on luxury items are becoming fewer and further between.

I'm not conflicted at all. Caveat Emptor.

Oh trust me. I'm a full time pain-in-the-ass. Really. I have references if you need them.

I have a gut feeling I can trust you on this one.

I am soooooo glad that we bought far less "home" than we could have. Even with the current market downturn ours has appreciated enough to cover all of our debts, were we to sell right this moment. Including my giant ass student loans.

Yes, I'm boasting.

It was pure luck, though, that we bought when we did, right before the market really took off but when the interest rates were still low, and a place that was really undervalued, thanks to the decorating habits of the prior owner, in an area that is now becoming increasingly more desirable. Couldn't have done it on purpose, but I sure am glad I did it on accident.

And our rebate arrived today! Probably should get the car serviced first, so that we don't pull a katiesue on the freeway, but then I see a wii in my future.

Yeah, buyer beware, but also Everyone Else Beware, because we're at the mercy of the stupidity of these buyers.

BTD may be right that this exact type of lending may not occur again (in living memory), but this isn't the first time that stupid financial practices by companies and stupid financial decisions by consumers have screwed everyone over. It will happen again and again, in some form.

R's hit the bank today. Mine should be next week-

Speaking simply for myself (and myself only), I have suffered no ill effects of the mortgage fallout. In fact, I saw it coming and intentionally worked my way around it (intentionally did not buy a house, made sure that we were not extending ANY form of credit to our mortgage banking clients, etc.). Too many people took a huge risk with expectations of coming out on top and they are suffering the consequences of their (bad) decisions.

But I know that it has had an effect on the national economy and many MANY people. But the recession (or whatever you want to call it) that we are currently in is not just the fault of the mortgage business collapse. Our economy has its ebbs and flows and there will naturally be upturns and downturns. This too shall pass.

True, after thousands of stores are shuttered, tens of thousands of jobs disappear, hundreds of thousands lose their retirement through stock market instability (I have a coworker who is retiring that now realizes their stockpile isn't quite what it was 5 years ago), etc etc etc.

I'm seeing it at my job. I'm seeing us put a hiring freeze in effect, which means that empty positions will remain empty for now, meaning worse service, meaning more stress for those that stay on, meaning less jobs to be had in general. The hiring we absolutely need is going through still but that could change next year. Who's applying for the jobs? The flood of mortgage industry refugees, meaning it's harder for anyone to get a job. I see this and I think beyond my one specific instance to the countless instances across the country.

Yes, this all will pass, like floodwaters - with disaster in the wake.

If you think you aren't affected, you are wrong. You buy goods and services, you have a job of any kind, and you are affected. Perhaps not as badly as someone who worked for Countrywide and purchased an ARM, but still, you are affected.

I hate the fact that we have to regulate against stupidity. But we do. Stupidity is real and has obvious effects.

And it is all part of evolution.

A brush fire is a disaster. Yet, it is part of the evolution of the land. Brush starts getting too thick and it starts choking itself to death. A fire comes through and returns the soil to a more nutritious state so that the plants can come back healthier than they were before the fire.

The flood had to go through. The waters could not run that swift that long. Yes, it is unfortunate, and yes, there may be some casualties. If you planned for the possibility: good for you. You probably survived with minimal impact. If you thought you could just blindly jump into the middle of it without considering the consequences, I have little sympathy for you. You've been washed out to sea and can swim back and start over. But most can just mop up and move on.

We cannot protect a society against itself: it WILL be destructive to itself. Yes, there will be sob stories (I have been one of them). But society (and the economy) will come back stronger and smarter than it was before. And yes, there will be more disasters again in the future - you can plan on it!

There are no get-rich-quick schemes. One gets ahead - be it personally, fiscally, professionally - through hard/intelligent work.

A little saying that I try to live by is:

You get better or worse each day: it's your choice.

What choice have you* made today?
What choice will you make tomorrow?





*And by you, I am not directing this to CP specifically - it applies to the reader, whoever they happen to be.