NY Times sob journalism

Another story on how the housing crash is hurting homeowners.

http://www.nytimes.com/2009/06/03/business/03mortgage.html?_r=1&hpw

Quote: Far from being one of those who used easy-money loans to speculate on homes proliferating across the desert soil of greater Phoenix, she has lived in the same modest, stucco-sided condo in suburban Mesa for a dozen years. She bought the two-bedroom home in 1997 for $77,500.

My problem is that the reporter is opining on the homeowner on her frugaliity, but doesn't opine on the homeowner refinancing to take out a more than the condo is worth.

 

Americans,

Stop trying to live on 110% of your income. Even 90% is a recipe for disaster.

Thanks,
Rick

 

Whaaaaaa! I bought something I couldn't afford! Whaaaaaaaa! I never planned for the day I might not have a job. Whaaaaaaa! I bought all the junk you see in my photo instead of opening a savings account! Whaaaaaaa! Why can't I get free money? Whaaaaaaaa! Why won't Obama pay my bills? Whaaaaaaa!

 

Yeah, stupid out-of-work people should be more careful with their money.

 

They should have been more careful with it when they were in work.

But I don't blame them individually. It's a cultural problem and it will take a cultural solution.

 

No. Stupid in-work people should save more and not, as Rick said, live on 110% of their income.

Sorry, but I have no sympathy.

I have a shitty-paying job - I'm in journalism. But somehow I've managed to buy two cars and a house and still have the proverbial "six months of savings" in an account in case I lose my job.

How hard is it?

I make X amount dollars. I cannot - EVER - spend more than X amount of dollars.

It's simple math.

 

We just need another depression-dust bowl-world war type situation to fix us

 

I'm hoping this recession is enough. There are some hopeful signs in the national savings rates and anecdotally, I'm seeing a lot of people get the hint.

 

It's selfish bastards like you who are ruining the economy by not buying stuff.

 

Congratufuckinglations.

My mom works two jobs. My dad is on social security. Their cars are 11 years old each. They have to rent a house 45 minutes from where my mom works because they can't afford anything closer.

They're not spending 110 percent. They are spending 100 percent, because they have no other option.

 

We're the ones who kept it from being worse than it was as the rest of you transformed the economy into one that depended on unsustainable levels of consumer spending.

(actually, that's not true. I learned my lesson the same way other people are now, the hard way)

 

Give me two hours with their household budget. I bet I can get it down to 90%, at worst. Probably further than that.

(and sorry to make it personal to them. It's not about them. It's about a culture that never taught them better)