I’ve attached a VERY interesting article about how homeowners that continue to make payments on homes that are way upside down may actually be hurting the economy. For me, it’s a refreshing change from the articles that are usually questioning the ethics and morals of people that would short sale or walk away from their home even though they can affors it.

I just counseled a very good friend of mine today and told him to stop the insanity. He is over $100,000 upside down on a home in Maricopa Arizona that is now worth about $80,000. He actually tapped into his 401K last month to make his mortgage payment!

This article reminds of another stimulus that a few folks blogged about way back when the first bail outs began. If the government would have just let all the companies fail, split up all the bailout money and given it to U.S. citizens, it would have amounted to well over $100,000 per person. What a boom to the economy that would have been!! I’d have that turbo Carrera I’ve always wanted!!! Obviously it isn’t that simple  and the side effects would probably have been a disaster but it sure is fun to imagine. Actually, our current situation is pretty much a disaster also so what’s the difference?

A little side note on the election. As I hear all of my friends debate and talk about our new Congress and what can now be done, I am reminded of a song from one of my favorite bands, The Who. “Meet the new boss, same as the old boss” – Won’t Get Fooled Again

http://bit.ly/avwdGq