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By Michel Leidermann
The Real Problem
Education Begins at Home
The real educational problem in Arkansas is not the run down schools or the teachers’ lack of effort to help their students who are struggling most, or that kids are not provided incentives to pass the necessary exams. The real problem is the lack of motivation to study; this motivation begins at home and is based in part by the example of motivation and expectations provided by the parents.
Parents are the most important influence in a child’s life. Children learn to socialize based on the socialization they experience with their parents. They also learn how to react to situations and how to obtain information from their parents. Therefore, parents, if you believe that your children are not becoming educated in the schools due to the lack of better buildings or bad teachers and other things of the sort, first see what your children are learning at home. It all begins there.
It Takes Two to Tango
The one who drinks is as guilty as the one who provides the drink
We are facing the worst mortgage crisis in our history and we generally blame the large
banking corporations and lenders for their insatiable desire to make money. But, could it be our own stupidity and ambition what makes us at fault?
For example, people who earned a net of $2,000 per month signed mortgage loans which required monthly payments of $3,500. How could a person which such little common sense get into this kind of trouble?
The $3,500 payments naturally include interest, taxes, and insurance which were not taken into consideration when signing a $2,000 mortgage. To pay that $3,500 that person will need to earn at least $10,000 per month. With the $2,000 this person makes per month, their loan should be of $65,000 and their payments should not be more than $560 per month.
Therefore, the solution lies in establishing clear rules which are simple to understand with calculations of monthly payments which include the mortgage, the interest, and the insurance, and to that amount one must add the monthly car payments, other loans, credit card payments; the total amount of monthly debt should take between 28 and 36 percent of the monthly income.
A good loan given through a bank or lender to a home owner is that which is given to a person who has the capacity and the will to pay on time. To determine the capacity for the borrower’s ability to pay the loan one must determine if they qualify for a loan and one should loan money based on this qualification.
It takes two parties to get into the trouble we are in: the lender and the borrower.
Both should know and respect the rules. It is not the government’s job to save those who took loans that were more than they could handle or to save the lenders who let their ambition take over. In our capitalist system, people and entities are responsible for their decisions, good or bad.
(Translated by Rosario Guerra)
