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A few weeks ago I stumbled upon a site named through a Google ad. I rarely click on Adsense ads, but this one intrigued me. The site presents a petition for renters to sign in hopes of stopping a housing bailout. I perused the site a little bit and figured that online petitions never really work, but I left a comment anyway and moved on.

Interestingly enough, this weekend I read an “expose” by The gist of the article is that Angry Renter is a fake grass roots campaign run by a non-profit organization called FreedomWorks.org ran by a bunch of fat cats including Steve Forbes. They also listed the expensive properties the leaders of the organization owns. They also quoted the president of FreedomWorks.org saying “I’m an angry homeowner who pays his mortgage”.

I found it funny that the Wall Street Journal needed to write this article because it shows that maybe Angry Renter is really pissing someone off. So what if Angry Renter is run by homeowners? Homeowners pay income taxes also, and I don’t think any sensible person wants their money to be used to prop up bubblicious housing prices so that their children cannot afford a reasonable home. I also don’t think anyone wants to contribute their hard earned money to banks that scoop in billions of dollars a year by being legal loan sharks. Though the site is biased, some of the statements on Angry Renter are true. For example, renters do not get tax rebates for renting, and for all intents and purposes, renting serves the same basic need as buying a home. Why is there such a clear discrimination? Renters do wield less political power because they own less money as a whole compared to the banks and homeowners. So what is the problem with one little non-profit group with rich donors wanting to give renters a voice?  Additionally, it is also true that most homeowners are responsible and didn’t buy into the housing bubble so that they don’t need a bailout.  So why should all of us suffer for the folly of a few?

I am just surprised that all of this is happening in America, a place that prides itself on freedom, democracy, and free market.  Why should people have the freedom to be stupid and irresponsible, but not be encouraged to manage their money wisely?  A general housing bailout seems to send the message that saving money for a downpayment and renting is stupid because as long as you bought a house the government will protect you.  Why don’t they apply bailouts to obsessive gamblers that were “tricked” by the , or stock speculators that lost their shirts during the dot com bubble?  Why is the housing bubble so special?  The answer is simply that the banks want their money back from people who can’t pay, and they are disguising their greed and grapple for survival as a humanitarian mission to “save the troubled homeowners”.  Give me a break because I don’t want to pay for mortgages that I did not sign for.

So the bottom line is, I don’t think you need to be a renter right now to be angry about the impending giant housing bailout. Currently, the House has passed a $300 billion bill for housing aid which . Unfortunately, old George only has a few months left in office and as long as the Democrats stay in power this housing bailout will probably go on regardless of how many signatures people collect.  Anyway, I hope more bailout bills never go through, but that is probably just wishful thinking.  Meanwhile, I will be a patient and maybe slightly angry renter.

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viagra maestroon 05.19.08 at 11:53 am

I asked a bunch of these same questions of Jim Campen, director of AFFIL (an advocacy group for borrowers), and wrote about it some time ago in this Wise Bread post:

(Perhaps my least successful Wise Bread post ever, because I chose such a poor headline, but on-topic regarding the issues of whether bailing out irresponsible borrowers is unfair to renters and responsible borrowers.)

viagra maestroon 05.19.08 at 2:43 pm

Good post. I especially appreciate the point about their being such great homeowner tax breaks when renting serves the same purpose. I did not realize 32% of the population was renters–why are we getting screwed out of benefits (unless we are extremely low income).

viagra maestroon 05.22.08 at 9:16 pm

I pay a mortgage too and think it’s ridiculous to bail out the housing market. People need to take responsibility for their actions, even if the consequences are painful. I’m glad that the president is finally doing something fiscally responsible and vetoing the bill. It’d be even nicer if the pansy ass GOP would stand up for what they’re supposed to stand up for. If the Dems get the white house though there will be even more irresponsible spending. :( Ug. I’m so sick of all the politicians. They’re all spending spending spending. As if it’s their money. Grrr!

viagra maestroon 05.23.08 at 2:20 am

Didn’t the feds, and isn’t that money suppose to be owers too, just bail out Bear Sterarns. What is the difference when we bail out banks compared to irresponsible would be homeowners who got in over their heads?

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