Comments on: Consumer Confidence Drops http://www.drinkingisbelieving.com/2007/12/07/consumer-confidence-drops/ The party doesn\'t have to end! Thu, 04 Dec 2008 03:41:54 +0000 http://wordpress.org/?v=2.2.3 By: Bubble Buster http://www.drinkingisbelieving.com/2007/12/07/consumer-confidence-drops/#comment-23 Bubble Buster Fri, 07 Dec 2007 22:18:14 +0000 http://www.drinkingisbelieving.com/2007/12/07/consumer-confidence-drops/#comment-23 What are home equity loans for? Borrowing against the value of the home for vacations, that new car, or maybe putting some of it back into the house. The fools who borrowed against the value of their home and spent it on vacations and cars, probably were doing so with the intention of a growing housing market boosting home values. Maybe they could sell later and not have to worry about that cash money. Look at the current situation; it's far from what the experts referred to as a strong market. Now, how about the smart people who invested that money in their home. Chances are that they, too, didn't get what they had hoped for. Imagine putting $50,000 into a home worth $250,000. That $50,000 will not immediately boost the value of the home my that much. With the recent increase of homes on the market due to foreclosure, the responsible home owner is suffering too! In a "free market" is it right for the government to step in and freeze interest rates??? I understand that this issue affects many people, but is this good for the economy? The markets ( especially housing and lending) should be free from government influence. Supply and Demand should drive prices. When things get bad due to shady lending practices, the lenders should be responsible. It is irresponsible to reward people for being unable to pay their bills. Many do not read the lender agreements, so who should really take the blame? Government intervention is not helping the issue, only prolonging it. Home values are not going to boom anytime soon, and in 5 years when those rates are "unfrozen," I wonder what gas prices will be. Also, what about the others who already lost their homes to foreclosure? It is not fair to freeze interest rates while others had to suffer. Everyone who is financially irresponsible should have to deal with the consequences. What are home equity loans for? Borrowing against the value of the home for vacations, that new car, or maybe putting some of it back into the house. The fools who borrowed against the value of their home and spent it on vacations and cars, probably were doing so with the intention of a growing housing market boosting home values. Maybe they could sell later and not have to worry about that cash money. Look at the current situation; it’s far from what the experts referred to as a strong market.
Now, how about the smart people who invested that money in their home. Chances are that they, too, didn’t get what they had hoped for. Imagine putting $50,000 into a home worth $250,000. That $50,000 will not immediately boost the value of the home my that much. With the recent increase of homes on the market due to foreclosure, the responsible home owner is suffering too!

In a “free market” is it right for the government to step in and freeze interest rates??? I understand that this issue affects many people, but is this good for the economy? The markets ( especially housing and lending) should be free from government influence. Supply and Demand should drive prices. When things get bad due to shady lending practices, the lenders should be responsible. It is irresponsible to reward people for being unable to pay their bills. Many do not read the lender agreements, so who should really take the blame? Government intervention is not helping the issue, only prolonging it. Home values are not going to boom anytime soon, and in 5 years when those rates are “unfrozen,” I wonder what gas prices will be.

Also, what about the others who already lost their homes to foreclosure? It is not fair to freeze interest rates while others had to suffer. Everyone who is financially irresponsible should have to deal with the consequences.

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