There are plenty of responsible people with low FICO scores... for example someone who saved, lived within their means, lost their job due to no fault of their own, and then got cancer and lost everything to medical bills not covered by insurance. There's a big difference between someone like that and Stanley Johnson here: http://www.youtube.com/watch?v=hn5EP9StlVA Not saying lenders aren't also at fault. They are. So is the real estate industry, banks, Wall Street, politicians, etc. No, I wouldn't loan a guy 200% with no money down and no income verification.
Are you kidding me? Three year old children aren't adults. What part of that don't you understand? What will foreclosure achieve? It will force the irresponsible deadbeat to live within his means. But what we really need is debtors' prison for people like that.
If you consider this more deeply then you'll discover that the foreclosures are the end result of irresponsible lending. Irresponsible lending was encouraged by the government in order to "stimulate the markets" and similarly now there are government handouts "to save the economy". The government at this stage is no different from the deadbeat paying one credit card with another and then hoping that tomorrow they'll win lotto You really think that if the executives get xxx million severance payouts while leading a company down the gurgler they are going to change their habits? Where is it that these executives are being held accountable for their actions? So why do you think that the average Joe is going to act responsible if he sees these examples? Until fundamental changes are made to the financial institutions and lending practices, and that those responsible are being held accountable, nothing will change. e.g.: Bring back the 30% deposit for owning a home. Peace M.
Isn't Keynes famous for saying saving money is a vote of no confidence in ones future earnings potential? That savings is actually detrimental to the individual and society? I knew a multi millionaire pauper. It's quite sad to have that as a goal although several relatives of this deceased gentleman are quite pleased Surf
Oh really? Thank you Captain Obvious for pointing out that living beyond your means is a problem. Did you ever stop to realize that this nation has been living beyond its means for decades? So what makes these average joes so special THIS time around? Please explain. I just saw you are actually blaming democraps. That says enough, you're clueless if you think that it's a Demo versus Rep issue. Let alone that the whole two party system is one big facade for the morons.
Without the DemoCraps initiating Affirmative Action Lending in 1999, likely NONE of this would have occurred.... criminal negligence and greed...