Reverse Mortgages

Most of us know how reverse mortgages work. Homeowners of at least sixty two years of age receive cash payments with their homes as collateral, to be redeemed at their death. While I have yet to consider one for myself, I see nothing wrong with such agreement. In most cases the next generation is far enough along that their parents shouldn’t have to stint themselves the use of the wealth they have accumulated in their lifetimes.

But when one party in an agreement benefits directly from the misfortune of the other, in this case death, a double take is in order. I haven’t heard of alleged foul play with these transactions. But, in another part of the financial world, we knew something was amiss on learning that major institutions had been making major bets against securities that their brokers were recommending to clients.  

When it comes to the environment we’re getting involved with some serious reverse mortgaging. There seems to be a difference of opinion here as to how much protection, if any, is needed. As I see it folks who think more caution is in order have science on their side. The other guys claim some random number of scientists who agree with them. I’d like to see the resumes of these experts. They might provide some belly laughs, particularly those institutions of higher learning bearing the brand of well known bible thumpers.

But let’s stretch a point and give equal validity to both sides. In that case there is a fifty percent chance of either being wrong. We’re not dealing with property now, but with the future of the planet and a lot of people who’ll be living on it after us.  As the stakes get higher the need increases for insurance, in this case prevention. True conservatives would want to go green as quickly as possible. I submit the word “conserve” as evidence.

Most of us can do with a little less material wealth and convenience, so as a nation let’s take something out and put it in a policy. Leaving things as they are is a reverse mortgage taken too far, except to those who don’t give a damn about the world they’ll leave behind.