You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #38: The Posts Point Out Exactly What Happened. [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
LeFleur1 Donating Member (973 posts) Send PM | Profile | Ignore Wed Jul-29-09 10:46 AM
Response to Reply #30
38. The Posts Point Out Exactly What Happened.
Some people were allowed to buy homes at inflated prices that they couldn't afford.

Fault? Lenders (who will suggest buyers lie about income, talk about rising wages (that never happen) and make it all seem so easy, so right, and Buyers (who can't figure out how much they have coming in and how much they spend each month, THEN assess how much they can afford for a house).

Okay, so they get the house they can't afford. They begin to borrow inflated equity to live their lifestyle. They refinance at a lower interest rate, fighting to get the payments within a range that they can pay. Now they borrow more equity to make house payments..???

The house value falls. They now owe more than the house is worth. They can't borrow any more. They are doomed unless they get a better paying job or put the kids to work. Then the greedy guts running the country begin to lay people off. Now there is no hope at all for that buyer...and the lender? The government pays another bank to buy the lender out, or take over the bank/lender.

This equals the mess we have today.
There was just a whole bunch of ...well...stoopidity.
Printer Friendly | Permalink |  | Top
 

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC