Noticed some interesting discussion here the other day about personal responsibility and bailouts. This comment was from Frank Grimes:
I’ve been hoping for a while to see a blog post about preventing a bailout. We all have the general assumption that there will be a crash/burst/melt of the real estate market in Vancouver. Maybe an issue we should concern ourselves with is preventing governments at any level from spending money on flawed and doomed-to-fail subsidies and buyers grants in hopes of stabilizing the market. I see it as being a black hole of money (corroborated by the US experience), and feel that it would hinder the process of resource re-allocation back to parts of the economy that are more “productive”.
Here are a few of my thoughts, how about you guys?
Bulls: Prices are HIGH! If you bought years ago you can cash out and escape Vancouver with quite the bundle now. Congratulations! .. or you can let it ride and see if there’s even MORE money to be made! Exciting times indeed, but how about this: Whichever you choose how about you agree now (while prices are high) that in the event of a housing market crash it’s caveat emptor? Let’s not try the same failed bailouts and market meddling they’ve tried in the states, how about a real free-market eh? You win some, you lose some. No F#(*!n@ Bailouts!
Bears: Election coming, is this the right time to contact candidates and preemptively ask them to pledge to stand against housing market bailouts? In a way the Canadian market is pre-bailed out via the CMHC, maybe it’s time to ask candidates to look at limiting taxpayer exposure to a housing market crash?
Everyone: What is about housing that makes people believe there’s such thing as a free lunch? Grow some balls and take personal responsibility for your buying decisions. No one else is going to read your contract for you or protect your bank account, it’s all up to you. If it’s worth it to you, BUY IT! .. But FOR THE LOVE OF GOD don’t complain to anyone if it turns out you paid the highest price and nobody else thinks it’s worth that. It was worth it to you right? You wanted it, you got the loan, you bought it. Just shut up and pay for it now, I don’t want to have anything to do with your decision, and I doubt any other taxpayers do, so let’s just say it loudly now: NO F#(*n@ BAILOUTS!