Originally Posted by
newKnow
Thanks Buzz,
I was just about to jump into the discussion and get on people for oversimplifying the cause of the housing crisis. It's easy to place blame on a group of people. Especially, if you don't identify with them. There is plenty of blame to go around, but is seems that most blame on here is being concentrated on people who walk away from their mortgages.
Didn't one of our own pilots just say they were $240,000 upside down in their house? What if he got furloughed and had to move to take a new job somewhere else to support his family? I wouldn't dare call him a slouch or place the blame for the housing crisis at his feet.
Especially, since when I was younger, if I lost my job, I can't say I wouldn't have had to move away to find another job. If I did have to move away for another job, I can't say it would have been for the amount of money I made before. With that being the case, I can't say I could have afforded to pay for a mortgage and rent in two different places for too long. Hell, I don't think I could do it for too long right now. I guess I suck.
For me, timing and luck is everything. I wish I could be smart like the other guys. But, I would suggest that some of us need to get over ourselves and wake up to see just how lucky we really are.
OK, here's Mr. Hardass again. In the theoretical example I've bolded above, that means a pilot would have bought a 500,000 home (since most areas have dropped by 50%). If a pilot who was in a position to be furloughed paid 500,000 for a home, that is HIS problem and his societal DUTY to pay it back. Notwithstanding the unbelievably poor judgment that shows, he has a duty to pay that back.
I do a bit of hiring and firing in my firm and in the firms I consult. We ALWAYS check credit history. This is exactly the kind of moral hazard and poor judgment we look for to weed out potential new employees. I know it sounds harsh because these people need jobs to dig themselves out of their self-induced financial crisis, but nobody wants to risk someone who shows such poor personal judgment and lack of moral character.
Carl