Some days I wish we could just turn back the time to 2003. Life was great. Everyone was prospering. But then again, we learn the most from our failures by hitting bottom, unfortunately.
Recently, I have become somewhat of a Dave Ramsey junkie. He is that off the wall financial guru that has a ‘tell it like it is’ attitude. He is honestly blunt, kind of like my internist. That is why I like both of them! I am not much of a sugar coater either. Just tell me how it is. Well, this week, his blog had some really great thoughts I wanted to share. “ I am here to remind you that YOU are going to fix the economy. Waiting for money to be taken from others and given to you is a spirit of envy, and its wrong”. Wow. That is pretty strong stuff. We do like handouts, don’t we? As a society I mean. The easy money. The 20% annual returns on our home values (for unlimited years in a row), or the 12% annual returns on our stocks, or , how about this one….buying a foreclosure and expecting that you will get 50% of the value just because it is owned by a bank.
Come on fellow Americans. Whatever happened to working hard for our money and embracing the free market philosophy? Isn’t that what our country was built upon over 200 years ago?
Speaking of handouts, there is a presidential candidate who has referred to households earning over $250,000 a year as ‘rich’ and that “they can afford to give up a little of their money so the less fortunate can have more tax breaks and prosper.” SAYS WHO???????????? Just because you work hard and take risk and have made sound decisions for yourself, you should give up some more of what you have earned ? By the way, there are many persons that make $40,000 a year, that have more savings than those earning $500,000. Where will it stop, this sharing of wealth and prosperity? Should we all have equal returns on our investments too? Should college students that have a 4.0 give up 1.0 so that the 2.0 average students can have equal opportunity for their careers? Of course not.
Like Dave Ramsey said, YOU control our destiny. YOU make your choices. YOU will turn this country around by your individual actions. Should the corporations that took the risk to leverage themselves on mortgage backed securities take the handout from the government so they can now prosper? Is it ok for the banks to be relieved, but homeowners still struggle? Shouldn’t we, the people, get some relief too? Or how about digging a little deeper, folks. When a possible Foreclosure Aid package is given (in the works now), where will be the differentiation between those foreclosures that were caught in bad times at no fault of their own (layoffs, sickness, etc) , and those persons that took advantage of the system either by fraud or lying about their income on their loan application?
You see, I am a bit harsh and opinionated on this subject. I agree with Dave Ramsey. Each of us chooses our path. If you can’t pay the mortgage, get a paper route to help pay for it. We have all made choices along the way, that have shaped our lives we live today. We chose the adjustable rate mortgage because the payment was $150 lower than the fixed. We chose not to pay attention at closing when we signed the paperwork (I still do not understand how that one is possible), we chose to take a family trip when things were tight and now cannot pay the mortgage. The list really could go on. Ultimately, we only have ourselves to blame.
How does all this relate to mortgage rates? Well, rates are determined by the sentiment of the economy. Wall Street reflects the feelings of you and I. They react to news, to reports, to indexes. They (traders) get scared and worried just like we do, and that reflects in buying habits. That is what moves the rates up and down. Uncertainty is not good. That is for sure. Yes, things will improve after the uncertainty of the election is gone. Regardless of who wins.
A report came out this week that consumer confidence is at an all time low. Well of course, the media does a great job of blasting it every breath they get! But it really is reality that we as a nation are in a recession. There are pockets of the economy, like Houston for example, that are doing fine. Adding jobs!!!!!!! But for the sectors of our economy that are suffering and affecting us all (like the stock market) did we bring it on ourselves? The small actions of years ago compounded, that brought us here today? The over spending, the ridiculous returns on investment, the choice to turn a blind eye to warning signs. I have always been somewhat of a glutton for punishment. If I deserve something , for my actions or lack thereof, I face the music. Suffer the consequences. Move on. Take control of your destiny. Don’t let the government or anyone for that matter (even your in laws!) tell you how to live your life or spend your money. Do what you think is best for you and your family. If you make sound decisions, the rest will fall into place.
Last but not least, I would like to thank all of you that reply with your comments, your praises, and your material! There are a few of you that send me articles constantly (you know who you are), and for that I am thankful! It really helps me see what topics are important, and helps me decide what you want to hear. Please keep sending them!
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