How the hell would you ever go through a closing if you don't understand the terms of your loan? It's only the most important financial purchase of your life. I can't believe people won't read a contract yet want to buy a home. Have you ever bought a house? The contract the clown bank produces at closing takes a little more than a few minutes to sign. Just sat through one in April and it took about 2 hours from start to finish.
Oh you are absolutely correct that they were robbing that money - and a lot of them knew it too. But it takes 2 to tango - and not caring if John Q 6Pack was actually going to pay back that loan is the other half of the deal.
http://bigpicture.typepad.com/comments/2008/10/misunderstandin.html This is gold-- heres a great one for all you racists out there (you know who you are) "The four biggest problem areas for housing (by price decreases) are: Phoenix, Arizona; Las Vegas, Nevada; Miami, Florida, and San Diego, California. Explain exactly how these affluent, non-minority regions were impacted by the Community Reinvesment Act ?"
The four biggest problem areas for housing (by price decreases) are: Phoenix, Arizona; Las Vegas, Nevada; Miami, Florida, and San Diego, California. Explain exactly how these affluent, non-minority regions were impacted by the Community Reinvesment ________ R u f(*& kidding me.. LOL. I gues you do not travel much. I Lived in South Beach, Miami....Far less afluent by population and far more "Minority" in population than you seem to know about. I go to Vegas often, Most locals are not "Affluent". There are less minorities in Vegas than say, Miami. I' m in LA often as well, the whole state of Cali has a huge Minority Population, Affluent pockets yes. But a huge "Latin" population, HUGE!!!!!!! THE COMMUNITY REINVESMENT ACT was design for "POOR". Not a specific Group. Look at the Forclosed properties and those in the process. Look at the % of homes in price ranges. That tells you the story, you don't have to be a racist to read between the lines there guy. Sure, some upscale homes are involved but not the majority in %
It pains me to see you guys teetering on the edge of disaster BUT. The banks can't really issue billions of new shares because hardly anybody wants to buy them. The underwriters certainly don't want to be lumbered with them. The rescue package may not be perfect but it's ALL the USA has got to get back on track imho. The barn door is half shut now but must have the House of Reps close it before what's left of the economy disappears. The "religious nut" view that the economy must somehow heal itself without any medicine is plainly ridiculous and highly dangerous. If the world's economic driving force commits suicide then we are all f*cked good and proper. Buffett is happy grabbing large slices of GE etc. but it's definately not the answer to the man in the street wanting to meet his bills. It's the rednecks that say tough luck to the "trailer trash" !! Do the decent thing US Reps for the majority of Americans and it's the right thing to do too luckily.
I think a large part of the problem is media advertising that you and anyone else can have a champagne lifestyle on a warm beer budget. âUnless you own a flash car or a large boat you are just a loser in life.â Not said in so many words but the glossy magazine pictures tell it that way. Young kids leaving home feel they need the latest of everything so they are acceptable by their mates. When I was a kid, there wasnât the pressure of the media which there is today. I could drive a clapped out second hand car then and you were cool, at least you had a car. These days the media paints a picture that you need the latest this that and everything. Gotta have the latest trendy clothes, car, house, boat, furniture, chic, mobile phone, TVâ¦â¦goes on and on. If only the media would STFU !
actually they were selling these products willy nilly cause the risk premium was thought to have been sold off via cdo's and no damage would be made since it would be spread throughout many different parties, of course the default risk premium was pretty much nil if prices are going up 20-30% a yr,
No one is forced to take on a mortgage. If you sign an agreement to repay, and fail, then you are responsible for your actions and their consequences unless you were somehow coerced, defrauded, or tricked into signing an illegitimate contract. Some people probably were bamboozled into bad contracts, and they should be released and the sellers jailed for fraud. But most people knew what they were signing and were just too damn greedy to cover the downside - result being they stiffed their lenders, caused bankruptcies, recession, soaring unemployment and the destruction of stock and bond savings.
1 person stiffing a lender didnt cause bankruptcies, recession, soaring unemployment. That person is only accountable for what that mortgage did for them....they didnt do anything illegal, it was perfectly legal to get 150% of the house value, to buy an overexpensive house and have money for a 1 year to live like a king.....It is ultimately the lenders fault who looked the other way because the commssions where hefty and now has to go bankrupt, fire people and cause their stock to tumble.....