charliehustle2011

Mind Over Matter

Posts Tagged ‘Inflation’

Who’s the Fool?

Posted by charliehustle2011 on March 11, 2011

Today, I suck it up and make the monthly mortgage payments on my house, which I cannot sell for close to the the 2007 purchase price.

I put 20% down on a 30 year fixed rate mortgage, and though under water, continue meeting my financial obligation because I borrowed the money in good faith, while people I know, who can also afford to cover their monthly nut, are choosing to walk away.

“It’s a business decision”, I’m told by friends, and co-workers; good people I respect, genuinely like, and would even trust to babysit my kids. “The U.S. Government pissed away our tax money bailing out the banks. Let them eat the loss.”

I think they make a valid point. We’re all pissed at the situation; caught in an ugly moral dilemma.

Am I the fool for thinking that I borrowed the money, so I should pay it back? Am I throwing away good money on an investment that may not recover? Are we on an inevitable slide toward becoming a third world joke?

I could stop paying, and stuff cash in a coffee can, wait until evicted, then rent a bigger, nicer house down the street, with a big deck and fancy hot tub, for less money than my current mortgage payment.

The savings could help cover increased fuel and grocery prices.

The direction things are moving is spooky, and I wonder if I’m the fool who’s watching what’s happening with eyes wide open, but ignoring the bigger picture.

Chuck

Posted in Economy | Tagged: , , , | 7 Comments »