Economy

Suprise, surprise! The housing market declined and many ended up in upside-down mortgages; that is, mortgage that are for more than the house is worth.

We can blame the Republicans, we can blame the Democrats, we can blame predatory lending as well. But we should blame ourselves too. When I was looking to buy a new home in 2002 I was staggered by the amount of money I was pre-qualified to borrow. Staggered. I thought to myself, "How the HELL can I afford that loan? And if I get it, will I then be reduced to eating Kraft Macaroni and Cheese and Ramen Noodles because I can't afford to do anything else?"

Yet, in my business I constantly see people come through that are in financial stress and I note their income and their house and car payments and I see that they make what my wife and I make and wonder what they were thinking when they bought that house for $400,000 and then lease two $40,000 cars. What are they thinking?

Are we THAT insecure that we have to keep up with our neighbors and family? Why can't we live modestly, or more accurately, within our means so that when things get tough we merely have to cut back on travel, or clothes, or whatever so we can keep up our payments and survive for a bit? I think many just continue to live the way they do, but more if their travel and clothes go on credit cards.

Probably the majority of people live within their means. My indictment is on the few crazy ones that have to have their McMansion on Golden Terrace and a Lexus for her and a Mercedes for him to feel self worth only to struggle each and every month to make their payments.

I think we've really lost our perspective in some sense and that doesn't have to anything to do with whether you're liberal or conservative. It just has to do with living with some common sense.