Comments on: The problem with the government getting into the market place http://www.bookwormroom.com/2008/02/06/the-problem-with-the-government-getting-into-the-market-place/ She escaped from the belly of the liberal beast Tue, 02 Dec 2008 12:16:38 +0000 http://wordpress.org/?v=2.6 By: Mike Devx http://www.bookwormroom.com/2008/02/06/the-problem-with-the-government-getting-into-the-market-place/#comment-19830 Mike Devx Thu, 07 Feb 2008 10:01:40 +0000 http://proto2.webloggin.com/the-problem-with-the-government-getting-into-the-market-place/#comment-19830 Ah, highlander, I think this truly was a case of unintended consequences. No one would have wished such a large number of home foreclosures on people who in good faith - but with great ignorance - bought into more financial risk than they could handle. In this country, you're allowed to take great risks for potentially great rewards - or great failure. Ignorance is no excuse for failure; it just puts you at greater risk. Do you really want to make failure comfortable? We have safety nets in place already for people so that the failures don't result in total calamity. I had a coworker who three years ago wanted to get in on the speculative frenzy of home ownership as a great short-term investment. To produce a huge profit quickly. I shook my head and said, anytime you or I hear about such an "oppportunity" through widespread mass media communication, it's already too late, and the speculative bubble must be about to burst. I don't feel bad for people who used home ownership as a get rich quick scheme. I do feel bad for the suckers who bought into the ARM mortgages, especially the ones with outrageous rider conditions. (Conditions that functioned as inevitable traps for the unwary, and were hidden in voluminous fine print that they lenders KNEW from experience were never read nor understood.) I pity these people, but what can you do? If it seems to good to be true, it probably is. There's no substitute for wisdom. Ah, highlander, I think this truly was a case of unintended consequences. No one would have wished such a large number of home foreclosures on people who in good faith - but with great ignorance - bought into more financial risk than they could handle.

In this country, you’re allowed to take great risks for potentially great rewards - or great failure. Ignorance is no excuse for failure; it just puts you at greater risk. Do you really want to make failure comfortable? We have safety nets in place already for people so that the failures don’t result in total calamity.

I had a coworker who three years ago wanted to get in on the speculative frenzy of home ownership as a great short-term investment. To produce a huge profit quickly. I shook my head and said, anytime you or I hear about such an “oppportunity” through widespread mass media communication, it’s already too late, and the speculative bubble must be about to burst.

I don’t feel bad for people who used home ownership as a get rich quick scheme. I do feel bad for the suckers who bought into the ARM mortgages, especially the ones with outrageous rider conditions. (Conditions that functioned as inevitable traps for the unwary, and were hidden in voluminous fine print that they lenders KNEW from experience were never read nor understood.) I pity these people, but what can you do?

If it seems to good to be true, it probably is. There’s no substitute for wisdom.

]]> By: Earl http://www.bookwormroom.com/2008/02/06/the-problem-with-the-government-getting-into-the-market-place/#comment-19831 Earl Thu, 07 Feb 2008 04:01:52 +0000 http://proto2.webloggin.com/the-problem-with-the-government-getting-into-the-market-place/#comment-19831 My brother has a dictum about this sort of thing.....if you do something that has perfectly predictable negative consequences, then you "intend" the consequences. You are not allowed credit for your good intentions when the ugly aftermath can reasonably be foreseen. And exactly what has happened was predicted by informed people years and years ago. This CANNOT have been a surprise to anyone paying attention - and not paying attention in these matters is culpable in itself. My brother has a dictum about this sort of thing…..if you do something that has perfectly predictable negative consequences, then you “intend” the consequences. You are not allowed credit for your good intentions when the ugly aftermath can reasonably be foreseen.

And exactly what has happened was predicted by informed people years and years ago. This CANNOT have been a surprise to anyone paying attention - and not paying attention in these matters is culpable in itself.

]]> By: highlander http://www.bookwormroom.com/2008/02/06/the-problem-with-the-government-getting-into-the-market-place/#comment-19832 highlander Wed, 06 Feb 2008 19:26:08 +0000 http://proto2.webloggin.com/the-problem-with-the-government-getting-into-the-market-place/#comment-19832 May I be the first to mention the "Law of Unintended Consequences"? But I wonder if they were really all that unintended. May I be the first to mention the “Law of Unintended Consequences”? But I wonder if they were really all that unintended.

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