For Mark Klepper, 50, who lives in Miami, buying a big house was a way to establish credit to start a business. In 2004 he bought a home for $585,000, and watched its value rise to $1.4 million. After refinancing twice, he owes $1,064,000. But the home is now worth a little more than he paid for it, and his income has fallen by 40 percent. He stopped paying his mortgage in January. If he were to continue paying, he said, the drain would crush his business. The government’s plan does not help him.
“I feel if there’s a plan out there, there shouldn’t be a limit,” Mr. Klepper said. “If the government is helping these lenders, they need to take some principal write-downs.”
Could I have some free money, too? Seriously, could I just borrow a lot of money and demand that the government subsidize or forgive the debt later on?
However, Gail Collins makes a good point:
Given the competition, I can’t get all that worked up about defaulting homeowners who are looking to the government for a rescue. True, a lot of them got in over their heads betting that housing prices would rise forever. But when it comes to stupid financial decisions to vent about, I’m sticking with Alan Greenspan.
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In a more important note, Nicholas Kristof says it's time for some serious balls:
The first step is to insist that aid groups be reinstated immediately to prevent this genocide in slow motion. A second step could be to destroy one of Mr. Bashir’s military planes with a warning that if he takes his genocide to a new level by depriving Darfuris of food and medical care, he will lose the rest of his air force.
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