The repeal of the Debt Relief Act is one of the causes of the demise of the
American dream cited by Hedrick Smith in his book, "Who Stole the American
Dream."Especially interesting because at the same time Congress
stole the DRA from ordinary Americans, they made bankruptcy much easier for
large corporations. Now, instead of bankrupt corporation being required to use
an outside set of managers to satisfy the bankruptcy's requirements, they
are free to allow current executives to take care of it.This results
in some of the outrageous behavior we've seen in cases such as the recent
Hostess bankruptcy. In that case, top execs handed themselves pay raises of
about 300% and even asked for bonuses of about a million dollars each to "do
the work needed to close the company." Unbelievably, the bankruptcy court
handed them bonuses of several hundred thousand dollars each.But
this is America, where Congress has been bought and paid for by the big guys.
We little guys just have to suck it up and keep smiling.
Everyone and every business needs to be responsible for the debts they incur.
But then I am nervy enough the think the government shouldn't spend money
it doesn't has. Due to an attractive market, many people bought
houses that were more than they could afford. Propping them up just means we
will have to keep propping them up, because they are in houses they simply
cannot afford. The better solution is to let them downsize to the right size
house for their budget. Let the market finish adjusting. Together home owners
and lenders made unreasonable loan contracts. Let the banks negotiate a short
sale with the owners if needed.This is what responsible adults
do.When you prop up the payments for the home owners, you are in
fact bailing out the banks. They will get all the money. Did you
catch that? BANKS WILL GET ALL THE MONEY.As one who purchased
modestly, I resent being asked to pay (taxes to) banks for the mortgages they
shouldn't have granted, on extravagant houses the owners never should have
bought in the first place.
While a very biblical principle, debt relief is probably never going to happen.
Now if we had true parody with the rich, we would get a huge windfall, bonuses
and an even better job just for foreclosing.
I find it odd that I agree with "one old man" on an issue...that is that
the Debt Relief Act should not have been gutted as it was. Not for the reasons
stated by Hedrick Smith (a classic wealth redistribution advocate) but because
it added power to the money lenders of our society to continue to enslave the
individual without an escape clause. I also very much disagree with
his very one-sided analysis of the Hostess failure. It was a result of trying
to conduct business in an environment where demand was down, management
outdated, and labor unyielding.
Why should I be forced to pay for someone else's bad decision in buying a
home they wouldnt be able to afford?You can argue it seemed like a
good decision at the time, but that doesn't matter.My neighbor
should be forced to pay for my bad decision, and I shouldnd thave to pay for
his. Sorry liberals. Pay for your own mistakes.