Dumb And Dumber

That title refers to me.  I’ve been incredibly naive and gullible for too damned long.



When I first saw the NYT article on people who moved onto a flood plain and were then astonished to discover high water, I thought it was a funny human interest article.  Since I thought that no lender would offer a mortgage on a home in a flood plain that didn’t include flood insurance, I was curious about the cost of a policy… so I tried to find out how much it would cost on the open market.

Imagine my surprise when I discovered that the only flood insurance offered is one based on a FEMA subsidized (100%) policy.  If you peruse their website, you’ll discover how they train policy sales people and how to get in line to become a corporate welfare recipient of a program that’s sold as a social safety net.

A friend of mine expressed regret that he felt a little mean for thinking that maybe they deserved what they got.

No… what I think is mean, is luring ignorant people into taking risks that will statistically result in a benefit to someone else.  A benefit that’s going to add to the debt that will only be paid by my (our) grandchildren.

What the heck is going on?


4 thoughts on “Dumb And Dumber

  1. I’m afraid I’d have to put this one into the “so what else is new” category my friend. I mean, is this really any different than making it possible for people to buy homes they can’t possibly afford in the name of “improving our neighborhoods” through a renewed respect for property? Or how about teaching entire generations that they can have off the kids they want, because society has their back?

    The world is full of people who raise all kinds of hell over man’s “interfering with the natural order.” But “nature’s way” of doing things involves limiting the population to the individuals that can fend for themselves. Doesn’t that make the welfare state a violation of nature?

    I touched on this idea a bit in my It’s Nature’s Way Of Telling You Something’s Wrong post.

    • Right again, Mak. I loved your post describing the mathematical certainty of war being proportional to stupidity and inversely proportional to intelligence. I think it’s even more universal than that. Our current debt dilemma might be another condition it describes.

  2. For its cut, the federal government will have to get in line behind the insurance companies that sell flood insurance (I assume a few still do, at exorbitant rates of course), the mortgage companies that make loans on vulnerable property knowing it lacks flood insurance, and of course the homebuilders that knowingly built and sold homes in a floodplain. As for the buyers deserving what they got, yes, they probably do, just like those who gleefully took out subprime, adjustable rate, no-doc, and balloon-type mortgages a few years back. Caveat emptor. I dunno, do you blame the government for selling flood coverage or the citizens for demanding it?

  3. Based entirely on what a realtor friend told me, flood insurance has been an exclusively government program since sometime back in the 60’s or 70’s.

    I don’t know about other states, bur here in Texas, you can’t get permits to build in a flood plain without making some concessions to the risk. I’m not sure if insurance is required, but I do know that you can get approval if you raise the structure above the flood plain.

    I blame both those who demand the product of other people’s labor and the government for facilitating such theft.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s