Saturday, August 18, 2007
How Missed Signs Contributed to a Mortgage Meltdown
you have got to be fucking kidding me!
this is what happens in a market of greed, where rising house prices see lenders willing to do just about anything to get desperate buyers to sign on the dotted lines and into a home, never mind their ability to pay. unbelievable, incredibly low monthly payments mean only one thing - they're going up!
this sorry state of affairs might have the market in jitters, but the really sad news is that there is really only one big loser at the end of the day: the families that borrowed over and above their ability to pay, expecting the equity to rise in the value of their properties and can no longer afford their variable rate mortgages and are now forced into foreclosures because of their own short- sightedness, swayed by offers of low monthly payments and irresponsible lending policies. it is they that must pay the full price of this latest merry-go-round of american greed.
why american greed?
because in european union economies, lenders simply aren't allowed to seemingly do as they like in order to get buyers to commit. all financial lending institutions are much more heavily regulated in everything from advertising to business practices, which is why you aren't reading about this particular crisis affecting overseas lenders...
how about instead of seeing the utterly meaningless ad on tv "please drink responsibly",
how about "please borrow & spend responsibly"?
missed signs? not to anyone that works in the industry.
only morans would argue against that...