Big banks reach agreement to prevent struggling families losing their homes: news.com.au
PRIME Minister Kevin Rudd will today announce 12 months of mortgage relief for the unemployed….
In his speech, the Prime Minister says the stress of paying mortgage and car payments are “real bottom-line concerns around kitchen tables right across Australia”.
“The immediate problem facing many families whose breadwinners have lost their jobs is the anxiety and fear that arises from, ‘How do I pay my mortgage, how do I pay off my car?” Mr Rudd says.
“That’s why, some time ago, I asked the Treasurer to negotiate an agreement with Australia’s big-four banks on a comprehensive package of assistance to workers who lose their jobs.”
At least when Obama was talking about bailing out homeowners in the US there was two justifications: one, lax Government regulation which led to the mess, and two: they’d already bailed out big business anyway, so it was really a matter of sharing the money around to some extent.
Neither apply in Australia.
What angers me is that this rewards people who aren’t responsible enough to manage their finances. Yes, becoming unemployed is hard and it’s not always your fault, but consider that the job cuts coming in many industries now have been predictable (mining, car industry, export related jobs etc.) If you were working in a high risk industry, the sensible choice would be to reduce your exposure to debt for if and when the rainy day came.
Then consider that if you do have a mortgage you can take out income protection as well. So thanks to Mr Rudd, people who do THE RESPONSIBLE thing and insure against unemployment by paying more on their mortgage payments to cover the insurance miss out, while those who aren’t responsible get a 12 month free pass anyway.
Anyone who has income protection insurance is going to be scratching their heads today, and if free to do so, canceling their insurance Monday morning.
And then there’s mention of car payments from Rudd. So I’ve taken out a massive mortgage without insurance, but I’ve also gone and purchased a $45,000 V8 Commodore on credit as well. Oh, poor me, life is so fucking hard, the Government should help me with my debts if I lose my job.
So a person who lives in their means, spends conservatively on a car with no loan (be it a used car or cheap new one) misses out, but those who couldn’t help themselves by running up even more debt get a hand from the Government.
Fucking unbelievable. This REWARDS bad behaviour.
What message does this send out to kiddies: oh, if you completely fuck up your finances, Chairman Rudd will be there to help. If you’re competent and cover yourself, you miss out.
For the record we have no debt of any type (including no credit cards). No, I don’t own a house either, and our single car was purchased for $13,000 (after trade in) brand new in 2003. We’ve owned it ever since, and the small debt we had on the car (we’d saved for it) has long been paid off.
One final word: to be fair though, Howard wouldn’t have been much better, and I’m not convinced Turnbull would be either, it was after all Howard who mastered the art of middle class welfare. There’s got to be a better choice.
Seems crazy to me. The same with the bonuses they are handing out.
One could also ask, “What happens to renters who lose their jobs? Do they get their rent paid for a year? No? They get tossed out of their home.” So it's not about the psychological damage of losing a “home”, but the financial damage of losing a “possession”.
Wow you have missed the point and relied on some mis-information.
1. Lots (not all agree) of families really were never in a position to pay down debt.
2. You assume most people in some industries were going to predict a downturn of this order. Say that again. Did you? And if you did then with Steve Keen and a handful of others only.
3. For lots of people we are talking about income protection insurance is either not available or not a good deal. I assume you are not talking about consumer credit insurance (loan insurance) which is a rip off and typically only covers a month or two's payments.
4. The announced plan doesn't give you any money – just defers your liability to pay. It's not generally the case that you don't remain liable for all interest accruing as well. So it's not getting y ou out of jail and I would be keeping my income protection insurance if it does in fact cover me for unemployment (as opposed to inabilty to work through disability).
Best.
Gordon
… agree with Stilgherrian on renters deserving assistance too. In both cases it's not just the psych cost but a rather large range of costs to both the family (which Duncan doesn't care for) and the taxpayer (which I hope he does) when families (or non families) are forced to move.
G
Quite liked this post, thanks for posting it. bookmarking you right away! will surely be back again.
I didn't like Rudd from the get go, he talked the talk and now he's walking a turkey walk, he is a goose, and the payments that went out – what a joke – you know who misssed out ? The dole bludgers … they haven't got a single payment yet (from the recession payments).
It is very hard to have your own house now a days.. So many people rent house to satisfied there needs.. But the problem is.. How long they can pay they rent?? hope the government will do something about this..
It is very hard to have your own house now a days.. So many people rent house to satisfied there needs.. But the problem is.. How long they can pay they rent?? hope the government will do something about this..
It is very hard to have your own house now a days.. So many people rent house to satisfied there needs.. But the problem is.. How long they can pay they rent?? hope the government will do something about this..
The wolves are guarding the hen house. That's the problem.
believe she tell parents that do not have a doctor that has an optical dept(which many don't) or if they don't have any insurance and need help …Then they can also go to walmart. We tend to forget that many of us parents with children with Down Syndrome have lots of other medical bills and no vision insurnace. I think she was just trying to help us all out. I don't see what is wrong with letting parents know all the options they have.
believe she tell parents that do not have a doctor that has an optical dept(which many don't) or if they don't have any insurance and need help …Then they can also go to walmart. We tend to forget that many of us parents with children with Down Syndrome have lots of other medical bills and no vision insurnace. I think she was just trying to help us all out. I don't see what is wrong with letting parents know all the options they have.