It’s Time for Personal Responsibility: Off Topic

It’s time Americans agree to take responsibility.

I was playing out in the yard with my daughter this afternoon when I stepped in a pile of some dog’s poop.

I lost my cool, which is unusual for me. Following cleaning off my shoes and regaining control, I asked myself why I lost my temper.

Then it hit me: I’m tired of people not taking responsibility. One of my neighbors wasn’t responsible and didn’t pick up following his dog. And I paid the price. All day, I had been reading regarding people being rewarded for not taking responsibility for their actions and how I was going to pay the price.

Just an hour earlier I read details of Obama’s homeowner bailout plan, paid for with my money. Obama claims that it will be cheaper for law abiding, mortgage-paying citizens like myself to bailout homeowners than to deal with the repercussions of foreclosed homes. He has a point, but he doesn’t address the long term affects of the homeowner bailout. It teaches our children the wrong lesson and creates moral hazard. Next time there’s a housing bubble and everyone’s buying more house than they can afford, you may as well jump in. The government will bail you out, anyway.

A couple weeks ago I talked to a real estate agent who told me how tough it has been lately. He bought three investment houses at the peak of the bubble and is losing $500 a month on each house. He explained to me (without me asking) that his credit and reputation were notable, so he was still paying the mortgages. It was as if he felt like he needed to make an excuse for being responsible instead of just dumping the houses on the bank. He’s probably had to answer questions from friends regarding why he cuts back on spending to keep current on his mortgages. “Why don’t you just drop the keys off at the bank?” He is taking responsibility for his own decisions, but that’s not in style right now.

It’s time to take responsibility. It’s time for Barney Frank to take responsibility. Maybe he can admit that encouraging people who can’t afford homes to buy them is not a good idea. It’s time for GM to take responsibility. It’s time for you and me to take responsibility. If we made a mistake, we must understand that we’ll pay for it. Even if it means paying off a home that’s now worth less than we paid for it.

I’m pained to lose 35% of my stock portfolio in a year. I’m pained to see my income go down. But that’s what happens in a recession. I have no doubt this will be a long and painful recession. Yet I’m prepared for it. I’ve done my best not to overextend myself. The last thing I want is for the government to halt the recession ahead of we have a chance to weed out the bad businesses and over extended credit. That will only prolong the inevitable.