Where is uncle Sam? Why isn't he watching this [short sales] and have control on it? Why allow the lending institution to do whatever they feel like giving crazy mortgages or short sales why is it up to them?

This question was posted by a young woman (a real estate agent) bemoaning the effect of short sales on property values in her neck of the woods.  Since liberty is a lot higher on my flagpole than property values, I'd like to answer her question.

Uncle Sam doesn't have control because we don't want him to be our Daddy. He's not any smarter than Uncle Kim in North Korea, Uncle Fred in Hoboken, or your favorite uncle. 

Uncles with too much power are called kings and dictators.  Uncle Sam doesn't have control because the United States is a democratic republic, unlike China, North Korea, Iran, or Russia. 

You and I have a thing called liberty.  
I'm at liberty to...

  • make my own financial decisions
  • buy property
  • sell property
  • live where I choose
  • borrow money
  • lend money
  • save money
  • go into debt
  • choose to win or lose big, depending on my tolerance for risk

I'm at liberty to do all these things precisely because Uncle Sam doesn't have the power to tell me that I can't.  I don't ever want to concede that power to Uncle Sam in the hopes that he will protect me from the consequences of my bad decisions. 

If you and I make good financial decisions, we reap and keep the rewards.  If we make bad decisions, we'll learn from them.  Fail Forward Fast is my motto.  Like a child burning a finger on a hot stove, it's a lesson that cannot be taught.  It can only be learned.

And that's the real estate opinion of this Tucson, Arizona mortgage lender,

Mike in Tucson
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona

 

85 Comments on "Daddy, Make Him Stop!" Why Uncle Sam Isn't the Answer in a Free Market

20 Most Recent Comments Displayed Show All

FEB
16
2008
Mike, I like the way you think.  Probably because we think alike. Now, what about the freedoms we forfeit when we choose to live in a deed restricted community and suffer under the tyrannical reign of a home owner's association?
9:23am • #66
1 Featured Post

Great post Mike! Someone said: "The market will go up, and it will go down." That is true whether stock market or real estate market. After years of high property appreciation, reasonable minds would expect some market correction, as it probably can't keep going up forever. So I agree from a micro point of view.

But.... in a macro view... Uncle also needs to share in the blame on how we got here. Environmental acts that caused our manufacturing operations to close due to clean air and water acts. Uncle's rush to join into NAFTA, GATT, SEATO, and other alpahbet treaties that shifted our good paying jobs to other countries where there are no clean air or water or food safety acts. Government officials that profited personally through moving our American companies offshore through the Overseas Private Investment Corporation (OPIC). Instead of asking for govenment bandaids, we should be holding our representatives accountable.

Plenty of blame to go around, but we as a country need to reinvent ourselves and bring back good paying jobs so that Americans can begin once again raising our standard of living. Without those jobs, we continue to spiral down to the super wealthy elite and the lower class, with the rapidly disappearing middle class.

9:37am • #67
1 Featured Post
Sorry for such a long post, I got carried away. :)
9:39am • #68
122,017 Points 6 Featured Posts Outside Blog
You have to take responsibility for your actions and learn to make it on your own. Parents have to raise their children and let them go. If you are constantly making eveything better for them and taking care of their problems, what have they learned?
10:53am • #69
Hi Mike... Great post. It's up to us to make the final decision.
Donna
4:35pm • #70
1 Featured Post Outside Blog

Hey Mike...What's with the subliminal responses?

Only thing I want to add is a minor correction...A representative republic.  The prevention of mob / hysterical rule is a cornerstone to our system of governance.  Long-forgotten, but still somewhere out there...;)

6:21pm • #71
FEB
17
2008
362,046 Points 5 Featured Posts Localism Sponsor Attended Rain Camp

Hi Mike, thanks for all the great reading and info you provide.


12:35am • #72
1 Featured Post Outside Blog
Cradle to grave, the democrat mantra.  I do believe there is a "social safety net" that is needed, just not a trampoline that allows people to be perpetually the recipients of a government bailout.
1:51pm • #73
FEB
19
2008
FEB
20
2008
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

placeholder to respond; I've been under the weather for a couple of days.

Mike in Tucson

2:04am • #75

We don't need more rules/laws, we don't need more government agencies to keep us on track, and we don't need Uncle Sam to make sure we don't make bad, or even stupid decisions. I love the points you make and could not agree more. Sometimes it just needs to be said.

Thanks for being a believer in freedom.

Dan Dillashaw, REALTOR

Virgil Adams Real Estate, Inc. Olympia, WA

www.SouthSoundLiving.com

11:43pm • #76
118,846 Points 9 Featured Posts Outside Blog

Mike: This is a really good post. This is fresh in my mind as the President just signed the stimulus bill and it will affect mortgage limits. Most people just don't understand the implications of the bill on the simplest level (Every limit is not going up in the 700s), but what about the unforeseen consequences? Who will buy the loans on the secondary market? How will the loan limits affect mortgage rates?

It reminds me of the auto manufacturers giving away 0% loans. The time came where it wasn't economically sustainable, but they couldn't wean the consumers away from it.

Sometimes, when government steps in, the cure is worse than the disease. I wish folks would stop crying Uncle and let things stabilize. The more Uncle steps in, the longer the correction will last. Can you say '1990s Japan'?

11:53pm • #77
FEB
21
2008
I agree.  This is why we all love this country because of its freedoms even the bad freedoms.  I love the freedoms so much I went to Desert Storm for them, so keep your chin up it will get better.  Just educate as many people as you can, and little by little you can make a difference.
8:10am • #78

The Larry Kudlow Creed:

"Free market capitalism is the best path to prosperity."

11:41am • #79
JUL
14
2009
1,222,279 Points 79 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Hi Mike,

I didn't see this one but I did today! Oh do I love this post! Thank You.....Thank You for reminding those who forget what we Americans are all about!

11:02pm • #80
DEC
23
2009
488,829 Points 7 Featured Posts Outside Blog

Mike, I found this post a year later and it is still true and will remain true as long as we remain free.

Nicely done.

Merry Christmas to you and yours and my very best wishes for a fantastic 2010. 

11:05am • #81
DEC
24
2009
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Bill,

Thanks for digging this old post up!  I had a good time reading it again, especially in light of today's political climate where our elected politicians are raiding the chicken coop!

Mike in Tucson

8:09am • #82
MAY
23
2010
277,489 Points 9 Featured Posts Outside Blog

Good point.  We need less government control, even in times of trouble.  The role of Government should be to protect our liberties, and nothing else.

10:57am • #83
FEB
18
2011
366,695 Points

But, but, but some in our country want to protect us from ourselves, and that means we may not be allowed to fail.

9:17am • #84
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Kevin,

There's no force on earth that can keep everyone from failure.  Either individuals will be allowed to fail or succeed, or the society as a whole will fail.  Look at what's happening right now with the Teachers Unions in Wisconsin and Ohio.  The few want the masses to support their lifestyle.  It's going to get interesting.

Michael,

Well said!

Mike in Tucson

3:27pm • #85

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Mike Jones

Mike Jones NMLS 223495

Tucson, AZ

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SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171)

Address: 2840 E Skyline Dr, Suite #230, Tucson, AZ, 85718

Office Phone: (520) 344-6943

Cell Phone: (520) 349-9090

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