Aaron Saray's Diary

Whats going on with our mortgages

Because of the changing economy in the US and our falling dollar value, some of the mortgages are now being raised.  See, people took variable rate mortgages when the rates were lower - and expected everything to stay normal.  Now, with the raising rates, these people are starting to freak out because their payments are getting higher and higher.  The government has a plan to possibly halt the raise of these mortgage prices, however. 

In this recent article, some light was shed on how the american public feels about this. I'd have to say, my opinion has become more muddied than when it was first.

First off, I was upset.  These people were dumb enough to take ARM (adjustable rate mort...w ell you get the idea) - so they should have to deal with the price of that going up.  The others who took fixed rate ones at a higher percentage don't get any break for being responsible.  The companies loured in the dumb ones to get them to pay on ARMs so they could jack them up later - and why shouldn't they?  

Then I got to thinking - if we have more and more idiots losing their houses it will negatively affect our entire economy.  Idiots are still idiots with money and jobs.  We can't have them all failing - it will expose us for being the weak country that we've become.

So all in all, I'm pretty upset about the government having to step in and possibly fix some of this - however, its probably a smart idea to preserve our economic way of life.  

Oh - and the other argument was that the mortgage companies had enough money as it was.  Well, thats very true - but really its just the fat cats at the top - the other working class people of the companies are the ones who are going to feel it.  When the money gets tighter or doesn't hit the prediction of the next quarter with fully paid ARMs, who's going to feel it?  The single mother secretaries and hard working fathers who are trying to suppor their familes, not the mercedes driving men at the top.

So - this just sucks.  I wish the american people weren't so dumb - landing us in these places to begin with.  Makes me wonder... whats going to happen next.