My plan to rescue the financial market!!!

Discussion in 'Wall St. News' started by hajimow, Jan 17, 2008.

  1. hajimow


    Just read and clap and bow for me :D

    I believe every person who wants to buy a house and get a mortgage should pass a test (like citizenship test) to test his basic knowledge about market and interest rates and... To make sure that what problem he might get into when like the interest rates goe up from 5% to 10%.
    Any one who applies for a credit card should also pass a test to make sure sure that he knows how he can get killed if he wants to pay 22% interest rate.
    Both tests can be combined together and call it debt and credt test.
    Now my question is if Bernake wants the government help the market fast, why he does not reduce the rate as a start?
  2. :confused:

    everyone would pass those tests. everyone knows what they are puttin up against, only they don't want to accept the risks.

    it's just like trading....
  3. Why would someone getting a fixed rate mortgage need to take a test or care what happens when rates go from 5% to 10%?

    People need to take responsibility for buying a house they cannot afford and banks need to take responsibiltiy for lending to people who cannot realistically afford to enter into non-traditional mortgages.
  4. hajimow


    Because he might not be able to pay even that 5% rate if he gets a $5000 financial turbulance in his life.
  5. So the test on what would happen if rates went from 5 - 10% is thus not relevant to the point.
  6. hajimow


    Yes it would be relevant. This test would give the person a little bit of understanding of what might happen if something might go wrong. Be it interest rate change, a $5000 emergency surprise cost,......
    Believe me some people believe that If the rate is 5% and they are paying $1000 per month, if the rate goes up to 15% , they would pay $10015:p
  7. I'm even more radical. I say someone should pass that test and own a house before they can vote! A little knowledge and responsiblity would be a nice prerequisite.

  8. :mad:
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  9. Bowgett


    Brilliant idea. Test should also include some basic math like calculating 15% of 200$ :D
  10. hajimow


    I agree.
    I used to get calls asking me " Do you want to reduce your interest rate?" and I would respond but my rate is fixed 0% for a year and then I will pay in full because I have the money in CD and then they would reply yes you can reduce your rate to 6.9%:confused:
    The reason was that they were hiring kitchen ladies for $5 an hour to give people financial advice.
    #10     Jan 17, 2008