01 Mar Opponents of bankruptcy reform are whiners
The biggest opposition to the Bankruptcy Act of 2009 comes from those who will not get a direct and immediate benefit.
“It’s not fair! I pay my bills on time!” Why should I help bailout someone who got in over his head? “Where is MY handout?”
If you are one of these people, quit your whining because in today’s world, there are two types of middle-class Americans: those in trouble and those that will be.
The high water mark on this economic flood keeps rising. In 2007, foreclosures comprised primarily of exploding adjustable rate mortgages. By 2008, however, the foreclosure virus began spreading to more conventional loans, collapsing the housing sector for good.
Today, more and more “responsible” Americans are being sucked into the foreclosure vortex because they are losing jobs, or their personal investments have evaporated. Even homeowners with actual equity cannot refinance out of trouble. Nobody is safe from this economy.
Today’s whiners focus their anger on the notorious “liar loans” they feel are the primary responsibility of the borrower, who is the least sophisticated party to the transaction. The “truth” behind liar loans is that the broker, underwriter and lender encouraged artificial enhancement of the application because, within minutes of creating the loan, it was sold to unsuspecting investors on Wall Street.
The 2009 bankruptcy bill will do nothing more than provide the same relief to consumers that corporations have been getting in bankruptcy court for decades the ability to restructure secured debt without exception. Even if the bill passes, it will only apply to past mortgages, not future ones.
The truth of the matter is that the bankruptcy reform bill is the only part of President Obama’s housing rescue plan guaranteed to solve the foreclosure crisis in this country.
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