Preditory insurance companies are adding to his pain. “My premiums were over $18,000 a year, before the cops hasseled me for going 122 MPH on Good Hope Road, and didn’t give me a warning. Now I have another unexpected premium increase.” Still, he notes, with glee, that he had lots of pedal left and wasn’t even up to 4^th gear. He will probably drop the insurance anyway because he feels he is a very safe driver and goes to church every Christmas.

The dreaded “Mortgage Crisis” is in full bloom and the woe lemmings are dutifully following the doomsayers over the cliff of common sense.

What caused this crisis?

1. Stupid borrowers who really knew they could not afford to buy a house that was not in their league, No, there was no socioeconomic bias happening here. CEOs loosing million dollar homes were in this equation too and just as stupid as anyone else who wanted to live well beyond their means.     

2.  Stupid greedy lenders who thought they could pass these bad loans on to the secondary market, often took credit applications written on cocktail napkins, never seriously checked reported/claimed salary, and checked credit scores by seeing how many blue stars someone had on Ebay.

What is the government solution to this problem? A $250 Billion bail out to Dumb AND to Dumber.

We the people are rewarding those who made idiotic financial decisions even though 97% of Americans are paying their mortgages on a regular basis and on time. We are letting the lending entities who made these stupid loans live to loan another day instead of letting them die a rightful death so they won’t corrupt the market in the future.

Let the borrowers go back to renting since they have no equity in their “home” anyway. Let the lenders go bankrupt or go to jail since they are bad business people. This is a solution that costs taxpayers nothing and will correct the market within months.