Economic Recovery is easy…Accountability is hard.

Question: Why is solving the problem of economic recovery so hard?

Answer: Because no one—and I mean NO ONE—wants to be held accountable. Not the government. Not the banks. Not the consumers. So what has me broiled that I have come out of my “blog update” hiatus? It’s bad enough that no one wants to be held accountable, but now everyone is seeking a handout. This one needs a bailout. That one needs a bailout. Those in over their heads need their debt forgiven. In my opinion, “accountability” (the “A”-word) has become profane. If I hear another radio ad from a lawyer telling people to call and get their debts “forgiven” it will be too soon.

The message being sent to Americans from a new crop of financiers is disturbing: Go ahead and live above your means and be fiscally irresponsible. When it gets bad enough that you can’t stand it anymore, go ahead and stop making payments. There’s a whole new “industry” that’s been created to help you get your debt forgiven. It will only hurt your credit for a little while, and you can always claim bankruptcy! There’s got to be a better way…

Here’s a thought: Allow people to make payments on the principal while the interest is deferred, but continues to accumulate at some reduced rate. With a nod to Boeing, we can call it the 747k. The program would be non-transferrable and only eligible for a home you’re actually living in. At the end of term there’s a balloon payment of interest due. At that point, the homeowner can sell the property and use the proceeds to pay the loan balance, get a reverse mortgage, or simply refinance the remaining debt. Simple. Isn’t that better than having the banks throw people out, swallow hard on the loss, and try to resell a property in a depressed market? Here’s the best part: It encourages the A-word. Yes, the “reduced rate” is one that the banks would certainly take umbrage with. But it was those same banks that took no issue with charging exorbitant rates of the people who could least afford it.

Is there accountability to be had by consumers? Absolutely. Just because someone tells you that you can afford a home doesn’t mean you can. It’s up to you to determine whether you’re living above your means or not. Paraphrasing the famous Kennedy quote, “Ask not what the government can do for you; ask what you can do to be accountable.” The A-word…what a concept.

Peace,
+THINKER

Please Donate at HopeForHaitiNow.org

George Clooney. Sting. Bono. Angelina Jolie. Brad Pitt. Leonardo DiCaprio. Morgan Freeman. What do these stars have in common? They understand the responsibility of their celebrity. Sure, the media regularly chases these and other stars in an attempts to find something "juicy" to publish in the tabloids, but these folks consistently put their money and effort where their mouths are. This evening, these stars and ~130 others are performing and answering phones in an effort to get you to donate money at HopeForHaitiNow.org. Unless you've been living in a cave, you should know by now that Haiti has been devastated by earthquakes and needs the help of everyone. As a matter of principle, people who know me know I don't forward chain letters nor do I solicit, but... Haiti is in dire need of financial help. My family has donated, and I encourage you to do the same to the extent that you can.

Peace,
+THINKR