Personal Responsibility Takes a Nosedive

<Originally posted elsewhere on October 14th, 2008>


Edward and I watched a 20/20 episode recently where a reporter did a story about the mortgage crisis and posed the thought that maybe, just maybe, the homeowners bear some responsibility in all of this. 

I was stunned that it's taken several months and a multi-billion dollar bailout by the government before someone put that question out there. Gosh, are we really responsible for our own decisions? 

In my rather humble opinion, much of the mortgage "crisis" is just an accumulation of a lot of bad decisions by people driven by greed and a visceral need to outdo the Jones'. 

I realize that banks offered sub-prime mortgages like they were giving out candy at Halloween but people seem to be forgetting the fact that THIS IS A LOAN.  You have to pay it back, sub-prime or not while on the other hand, Halloween candy is generally free.  Unless you won the lottery, this is a financial commitment and regardless of your lack of appropriate decision making skills, YOU HAVE TO PAY THIS BACK.  Why anyone would expect help from the government is beyond me. 

You wouldn't accept a Ding-Dong with a razor blade sticking out of it, would you?  And, even if you were a nutjob who DID, THAT WAS FREE.  Mortgages are NOT free.  Regardless of what the nice man at the bank says, you know how much you make a year.  You know how much you can allot for a mortgage payment each month (and if you don't, you should stick to renting as it's an easier numbers game).  


I am tired of hearing about the mortgage crisis.  I am convinced that the vast majority of it is people living beyond their means (and probably ignoring that little voice in the back of their heads that was saying "Don't do it, asshat" while they were signing the papers).  I am tired of the entitled attitude that so many Americans seem to have.  Aren't we grown-ups?  Don't we have to accept the consequences for our mistakes? 

Edward and I took advantage of the fantastic buyer's market last April.  We purchased a home that was in foreclosure and was an absolutely fantastic deal.  To find a house in Phoenix that was priced under-market and appraised for $40K over what we paid was incredible.  We ran the numbers over and over.  My income is unreliable because I rely on clients for work.  Sometimes I'm busy, sometimes I'm not.  As a precaution, we didn't even factor in my income at all.  Without my income, it was doable.  Very tight, but doable. 

And guess what happened?  I lost nearly all of my clients.  We had several unexpected medical and vehicle expenses totaling in the thousands of dollars. 

What did we do?  We cut back.  We cooked most of our meals and ate out only occasionally.  We ceased to purchase things "just for fun."  We downloaded movies instead of going out.  We were extra careful to use our appliances during off-peak hours (which is something we generally do anyway).  We did not make unnecessary trips out.  We went days without spending any money at all.  


At one point, after opening yet another medical bill that my faux health insurance refused to cover, I had a little meltdown.  I was tired of living penny to penny.  Did I want someone to bail me out?  No, I wanted to sell the house and move somewhere more affordable. 

Because of our cost-cutting measures and jumping on an opportunity that came our way, we're going to be alright.  We're even having our housewarming party this weekend which, like everything else, is being done on a tight budget.  We did the landscaping ourselves and we're catering it ourselves. 

I realize that my views are decidedly very un-Democratic but they are with good reason.  As an ex-social worker, I know first hand that people cease to do for themselves when you make a habit of taking care of them.  I personally favor *some* social programming but unfortunately, the general attitude towards such things is to take it and run.  And come back a little later to see what else is available. 

The banks are not entirely free of fault.  They should be reprimanded for unethical lending practices.  But some personal responsibility is in order as well.  You've made your bed, now you have to lie in it.  And if that bed happens to be in a refrigerator box behind a Safeway, you have no one but yourself to blame.