Posted by: Mike P. | April 1, 2010

Not So Good Financial Choices Breeds Tea Party People

I wondered how Tea Party people had so much free time, and now I know.

But real estate agents told them the home would sell for about $40,000 less than they paid 19 years ago — not enough to pay off their mortgage.

This is a very telling quote. There is only one way to end up in a situation like this, and that is to borrow against your home. So, after borrowing heavily against their major asset, it fell in value and now they have a problem. It is an easy trap to fall into if you are not careful. We nearly did, but we basically ignored the really high value our home appraised for and took a more conservative approach. That worked well since we are now able to refinance at the much lower rates currently available. However, you can only do that if your home appraised for significantly more than the amount you need to borrow. So, Ms Reimer can not sell and can not refinance. She is in a pickle. No wonder she is mad.

I do feel badly for the people who bought at the height of the boom. We were in that exact situation from 1990 until 2001. During that entire time period, right up until the time we sold our previous house in 2001, it was worth less than or just about the amount we owed on it. When we did sell, we caught an uptick in the market and made about 20%. A 20% profit over 11 years is not very good. So, while I feel for these people, it is important to remember the following advice.

A Home is where you live; it is not an investment.

If you want to invest in real estate, do it with buildings other than the one you live in. Or be prepared to move quickly and take a loss.

More from Ms. Reimer:

I just don’t trust this government

But yet, she trusts a health care company? Why do people think that trusting any public company makes sense? Generally, you can trust them to maximize profits, but a good percentage of companies can not even manage that. So, why, why would you trust a health care company to make a health care decision that is in your best interests? What possible motivation do they have? The only motivation they have to do so is if your health and their profits coincide, and that is most certainly not always the case.

She also takes some digs at the govt. running GM. That is a hard issue. I do not believe the govt. really wants to run GM either. But, letting it fail would have created quite a bit of unemployment.

Actually, letting GM fail could have been the end of our county. Imagine all those GM workers with nothing better to do than catch the FOX-1 virus which clearly results in tea party symptoms. And remember, FOX-1 is transmittable via conversation and most forms of media. The only known anti-viral seems to be a tax handout aimed directly at the infected, or perhaps a job. But, it has to be a high paying, easy job. Remember, Ms. Reimer gave up her job to be a full-time tea party person. I wonder where SHE gets healthcare. What covers her Medicare gap?

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