Millions of homeowners keep paying on underwater mortgages - latimes.com: "...payments on mortgages that are underwater could absorb billions of dollars that might be used for other forms of consumer spending — a drag on family finances, the housing market and the overall economy."
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So hurry up and lose your home so you can divert that underwater mortgage payment to buying a plasma TV? That's the socially productive course of action?
2 comments:
from the story: "And selling the home at a huge loss is out of the question."
The standard conservatarian response to complaints about H.O.A.s is that if a consumer is unhappy with his H.O.A., he can move to a better one. (or run for the Board of Directors, because Chicago-style elections are legitimate, and Communism would work if only the right people were put in charge).
Is the story suggesting that in a free market, changing homes is not as trivial a consumer choice as changing brands of cereal?
If the government was going to spend hundreds of billions of dollars to bail out the banks, it would have made much more sense to bail out the homeowners, who would have then paid the money to the banks anyway.
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