I Pay My Mortgage: What's in the Housing Bailout For Me?

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This country needs to get over its obsession with home ownership. Many of my friends have been tempted to become first-time home buyers over the last few years. I have always strongly discouraged them.
Renting is a much better value proposition, not least because you do not expose yourself to financial ruin because you used extreme leverage (5 or 10 to 1 in most mortgages) to buy an asset in the middle of an asset bubble. Even in good times, people spend far more on payments, interest, maintenance, renovations, taxes, broker fees, etc than they end up selling their house for, when adjusted for inflation.
Unfortunately, home ownership has become part of the American dream. I think the bursting of the housing bubble, which has only just begun and will not likely end until home values are half what they are today, will go a long way toward changing this irrational idea. An end to the mortgage deduction (where's my rent deduction?) is also fair and necessary.

RT of NY 11:33AM March 06, 2009

Luke you better be careful if you voice an opinion of disent, you could find yourself being audited by the IRS.

Walter of TX 11:31AM March 06, 2009

Everyone wnats to know What's in the Housing Bailout For Me?
After reading this and many other articles and thinking about the issues since 2003, I am reminded of a book I purchased in 2006 and read. The Coming Economic Collapse: How You Can Thrive When Oil Costs $200 a Barrel by Stephen Leeb and Glen Strathy I recommend that everyone read page 64 through page 89. I not only think the book is relevant, it appears to have been a good guide to the future (today). One other item of note....writers, and pundits continue to frame the issues (recession, banking, subprime etc.); they are not offering solutions to the issues. I believe that the current Administration has done the best to frame the issues, and effectively execute the strategy they believe will solve the problems. I see people typing in terms of labels, but they offer no solutions, I hear people moralizing mortgage debt without offering solutions, and see people raising specters in an attempt to demonize other people. Here is What's in the Housing Bailout For you...if the neighbor is saved we are all saved.

George of FL 11:30AM March 06, 2009

I am glad that because I make enough money that 31% of my income is more than my payment. As a single homeowner, I struggle regardless of the fact that my payment is less than 31% of my income. Things like, owning a car, paying insurance, utility bills and keeping up my house are sucking my excess money away....congrats to our president and government for continuing to reward failure! We live in a country that rewards losers and continues to screw those who make wise choices....woohoo.

Steve of 11:29AM March 06, 2009

My neighborhood is filled with vacation homes and condos bought by investors. They are not eligible for the bailout. They are going into foreclosure too--probably at a higher rate than the owner occupied homes. Using the logic that we responsible homeowners who did not buy too much or who may even (heaven forbid) have paid off our mortgages should welcome the bailout because it preserves the values of our homes doesn't make sense. If preventing foreclosures is the objective then you can't exclude non-owner occupied homes.

elise of FL 11:28AM March 06, 2009

I don't intend to sell my house and I have no mortgage. What is in the wasteful spending package for me other than higher taxes? How did Brad Pitt get to Washington yesterday to visit with Ms. Pelosi?

Ty of TN 11:28AM March 06, 2009

You must be joking, USNews. Shilling for Obama?
What's in the bailout for me?
NOTHING but Higher taxes, Marxism.

OldHardHead of NJ 11:28AM March 06, 2009

Do we really know why the bankers and their "friends" don't want key banks to fail? Could part of the reason be the lucrative pensions of their executives? Just wondering...

Sam of CO 11:27AM March 06, 2009

The government should be giving some tax credit or incentives to those of us who made smart choices, did not buy above our means, and contonue to work hard and pay our mortgage.
I do believe that foreclosures dramatically reduce the value of my property (way more than 9%) but my property has already fallen by weel over 25% due to the greed of corporate America and the BANKING INDUSTRY!

Mike Hanson of NV 11:27AM March 06, 2009