|
Termyn8or -> RE: Mortgage Meltdown (12/12/2007 10:11:52 PM)
|
There is too much to this for rough generalization. Does everyone who gets ripped off deserve to ? We mortals cannot answer that.
Do some ? Yes. To clarify, let me give you a hypothetical scenario.
You have a bank, they cash/deposit your paychecks, you write checks all that, and everything is fine, except that you rent. One day, you might have a few grand amassed, and you decide it would be a good time to but a house and build your own equity instead of someone else's. So one day you walk in to a loan officer and get prequalified.
A company who has dealt relatively fairly with you for years says you can buy a house up to $170,000. Wow, can get a nice place. They give you the rates and what your payment will be, unless you go ARM.
But then you see on the TV that a payment for a much more expensive house is not much more. Say double and it is only another hundred a month. For now.
So to suck you in, they'll give you one hell of a rate, maybe 2.9%, but it goes to something ridiculous when the introductory period is over. They might let you pay interest only for the first few years as well, there are loans like that. But after say three to seven years the introductory rate, well it introduces you to the rate, which is the near usurious credit card rates. Now I don't really mind paying that higher rate for like $25,000 or even $50,000, but when you gets to $300,000 there is no way.
There are two reasons they do this. One is that banks know that money is useless and it is the worst investment in the country. The whole investment industry in this country is based on that. Get your money out of money and into something useful or at least paying, hedging the ubiquitous inflation, which is actually deflation of the currency. Currency is the worst thing to have. So they want property.
In other words the bank considers your house money in the bank, and when they fuck you over, they get it back, all of it. They have had you there as a serf, mainaining the place, keeping the gas on so the pipes don't freeze, even remodeling and doing improvements, all of which they get for free. It's a sweet deal for them. They don't worry all that much about you wrecking the place, because they gave you the illusion of ownership.
Read that last line again, I just did.
There is alot more to this system than they teach in the schools. It all works together to make the rich richer, and guess where that comes from. Us.
So now Bush is trying to look good by putting a moratorium on end of introductory rates. First of all, he simply does not have the authority to do so, but then.........
These people signed contracts. If they knew how to read, they would already know that their house payment was going to go from $565 to $1675 per month. They got no money down, about $110 in equity for the five years they were there if they are lucky, and NO, it is not fair. But that is how it is.
But they signed a contract. Maybe they can't read and understand, but they burned up their credit, and for nothing. And they do not get a chance to try again and do it right, like buy a house that is within their means, that they can afford, hopefully with a fixed rate. They done burnt their credit to a crisp. And chapter seven bankruptcy is fond memory now.
But we HAVE TO HAVE THIS HOUSE. Look here hun, we CAN afford it ! People can't say no.
And what's a new ivory tower without plasma TV, a home theater, surround sound, wifi, wii, cable modem, a pool, a den, a sunroom, vaulted cielings and of course some pets, perhaps a horse. It will be the best Christmas ever because you still have credit cards.
And then five years from then you have the worst Christmas ever.
Was it worth it ? Some actually say yes. Others are stupid. What else can I say ? A fool and his money soon go seperate ways, and it has been that way since the dawn of maney. What would you have me do about it ?
T
|
|
|
|
