Comments on: Redefining Played By the Rules http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Trevor @ Financial Nut http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1696 Trevor @ Financial Nut Wed, 11 Mar 2009 16:41:22 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1696 Interesting points made here. I like what you say, though, about putting 20% down. It's so key! It'll save you so much money in the long run. My wife and I are on our way to saving 20%. It's not easy because we'd like a home right now, but it's worth the wait. I found you via Wisebread's Top 100 Personal Finance Blogs. Congrats on making the list! Interesting points made here. I like what you say, though, about putting 20% down. It's so key! It'll save you so much money in the long run. My wife and I are on our way to saving 20%. It's not easy because we'd like a home right now, but it's worth the wait.

I found you via Wisebread's Top 100 Personal Finance Blogs. Congrats on making the list!

]]> By: JustAsking http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1687 JustAsking Fri, 06 Mar 2009 18:39:14 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1687 tfb, From whom would they buy mortgage insurance? AIG? :) And losing their jobs would affect their ability to make the payments. The overall decline in real income over the past 30 years means that a lot of people who might have been able to afford it before are just hanging on now. But I agree with your conclusion: you gambled, you lost, here’s help, next time don’t gamble like that. JA tfb,

From whom would they buy mortgage insurance? AIG? :) And losing their jobs would affect their ability to make the payments. The overall decline in real income over the past 30 years means that a lot of people who might have been able to afford it before are just hanging on now. But I agree with your conclusion: you gambled, you lost, here’s help, next time don’t gamble like that.

JA

]]> By: TFB http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1686 TFB Fri, 06 Mar 2009 18:18:37 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1686 JustAsking - I understand the job loss. They didn't follow rule #5. Mortgage insurance was widely available. They are one job loss away from not being able to afford the mortgage payment, but they still decided to self-insure and not buy mortgage insurance. It's like people who live in flood zones but don't buy flood insurance or live in earthquake zones but don't buy earthquake insurance. That's gambling on they won't lose their job or in the cases of flood insurance and earthquake insurance, there won't be flood or earthquake. I don't mind helping people who suffer from job loss, flood or earthquake. I do want to get the right message across: you gambled, you lost, here's help, next time don't gamble like that. JustAsking – I understand the job loss. They didn't follow rule #5. Mortgage insurance was widely available. They are one job loss away from not being able to afford the mortgage payment, but they still decided to self-insure and not buy mortgage insurance. It's like people who live in flood zones but don't buy flood insurance or live in earthquake zones but don't buy earthquake insurance. That's gambling on they won't lose their job or in the cases of flood insurance and earthquake insurance, there won't be flood or earthquake. I don't mind helping people who suffer from job loss, flood or earthquake. I do want to get the right message across: you gambled, you lost, here's help, next time don't gamble like that.

]]> By: JustAsking http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1684 JustAsking Fri, 06 Mar 2009 16:55:46 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1684 tfb, I think the idea is that a lot of people in the first category--"those who paid 20% down, took a fixed rate mortgage, can still afford the payment, but are upside-down with their loan because the home’s value dropped more than 20%"--lost their jobs and/or their savings and can't, in fact, still afford the payment. I don't think we need more social disruption caused by these people losing their homes to foreclosure. The ones who make $30k a year and were sold a $600k home, yeah, they need to move to an apartment. But I have no objection to sharing the wealth and helping the less fortunate--in good times or bad. JA tfb,

I think the idea is that a lot of people in the first category–"those who paid 20% down, took a fixed rate mortgage, can still afford the payment, but are upside-down with their loan because the home’s value dropped more than 20%"–lost their jobs and/or their savings and can't, in fact, still afford the payment. I don't think we need more social disruption caused by these people losing their homes to foreclosure. The ones who make $30k a year and were sold a $600k home, yeah, they need to move to an apartment. But I have no objection to sharing the wealth and helping the less fortunate–in good times or bad.

JA

]]> By: TFB http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1683 TFB Fri, 06 Mar 2009 15:48:42 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1683 @Jasonian - I don't care any more whether people who didn't play by the rules are bailed out or not. I'm not getting into the debate whether it's fair or whether helping them does the greater good for the economy. All I want to say is -- let's be honest -- don't say they played by the rules when they clearly didn't. @Jasonian – I don't care any more whether people who didn't play by the rules are bailed out or not. I'm not getting into the debate whether it's fair or whether helping them does the greater good for the economy. All I want to say is — let's be honest — don't say they played by the rules when they clearly didn't.

]]> By: Jasonian. http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1682 Jasonian. Fri, 06 Mar 2009 08:45:15 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1682 I'm not sure I understand what you're saying about people who played by the rules. Should they get "bailed out"/"helped" or not? It seems unfortunate that of two people living next to each other, one who played by the rules, one who didn't, one may get help, the other may not. I followed all the rules you laid out. If my neighbor gets help, then I want it too. Better though that no one "get help": this is the market, it happens. I'm not sure I understand what you're saying about people who played by the rules. Should they get "bailed out"/"helped" or not?

It seems unfortunate that of two people living next to each other, one who played by the rules, one who didn't, one may get help, the other may not.

I followed all the rules you laid out. If my neighbor gets help, then I want it too. Better though that no one "get help": this is the market, it happens.

]]> By: Pelon http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1680 Pelon Thu, 05 Mar 2009 18:45:01 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1680 There are two things that annoy me about people's reaction to the current financial situation. The first is what you've highlighted above, the second is the thought the the government is supposed to protect us from all the bad things that happen in the world. There are two things that annoy me about people's reaction to the current financial situation. The first is what you've highlighted above, the second is the thought the the government is supposed to protect us from all the bad things that happen in the world.

]]> By: Jim http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1678 Jim Thu, 05 Mar 2009 18:12:34 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1678 This was very well said! I agree with you 100% This was very well said! I agree with you 100%

]]> By: simplesimon http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html/comment-page-1#comment-1677 simplesimon Thu, 05 Mar 2009 17:05:00 +0000 http://thefinancebuff.com/2009/03/redefining-played-by-the-rules.html#comment-1677 There's a lady at work that was complaining about the possibility of certain homeowners (the responsible ones with good credit and whatnot) getting more help than those that weren't responsible. She didn't say which group she belonged in, but this lady also has 75% of her 401k in company stock (the other 25% in a stable value fund for tactical rebalancing) and also has a second house in Las Vegas which they bought a few years ago and does not rent out. Oh, and she's almost 60. Her complaint pretty much annoyed me, but I can't help but feel bad for her. There's a lady at work that was complaining about the possibility of certain homeowners (the responsible ones with good credit and whatnot) getting more help than those that weren't responsible. She didn't say which group she belonged in, but this lady also has 75% of her 401k in company stock (the other 25% in a stable value fund for tactical rebalancing) and also has a second house in Las Vegas which they bought a few years ago and does not rent out. Oh, and she's almost 60. Her complaint pretty much annoyed me, but I can't help but feel bad for her.

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