Foreclosures

I have been more curious about the current situation with the mortgage crisis and foreclosures. On the news the financial situation of the Octomom has been discussed. She had sextuplets first and just recently had octuplets. She has no job, lives with her parents, and received insemination from her insurance company and there is even speculation of her receiving plastic surgery. Where does she get the money to pay for these large expenses? It was recently discovered that their house is being foreclosed on. She has been going on the web requesting money and a bailout. This situation can relate to my discussion on the frivolous use of government aid. Our taxes are going to go to pay for this woman’s home, when she could probably pay for it herself if she wasn’t so careless. She should not have had 14 kids knowing she could not afford them. Also, no one should have given her the insemination knowing she could not afford it or the cost of the children once born. She also had plastic surgery and gets periodic manicures with money she doesn’t have. I think these situations are the ones that frustrate taxpayers the most. Our money goes to pay for people who are not planning financially. This website gives information on the Octomom foreclosure.


http://www.tmz.com/2009/02/18/octomom-nadya-suleman-foreclosure/

I think more people should be educated on the proper way to handle finances. People need to learn to save. This is one reason Social Security is having trouble being eliminated. People do not know how to save on their own. More classes on financial planning should be required, and they should be required in schools before the legal drop out age of 16. Here is a link to Morningstar.com where you can learn about stocks, bonds, and investments.

http://www.morningstar.com/Cover/classroom.html

My grandmother and I had a discussion about the massive amount of foreclosures and how taxpayer’s money would be going to assist people with their mortgages. After hearing this story, the plan of assistance makes me angry. However, from another point of view, the banks holding the houses and the houses depreciating rapidly in value as they are not being cared for does not help the system either. Helping people get financially stable should be priority but you can’t just give needy people stuff for free when there is a lesson to be learned. People will think that when times get tough, someone will just bail them out. Financial education is necessary for the economy to improve. People keep blaming risk management strategies, but what about individuals who don’t exactly hire a risk manager? As individuals, we still have to manage our risk, and financial knowledge is a start.