This might shed a little light on our current condition and how we got there. It did for me, how bout you?
http://www.youtube.com/watch?v=H5tZc8oH--o
http://www.youtube.com/watch?v=H5tZc8oH--o
What Caused Our Economic Crisis?
- Thread starter Uphill
- Start date
I believe the mortgage mess is here for a quite a bit longer than you may think. 8yrs ago the housing industry was booming with low interest rates where people pulled balloon mortgages and even fixed rates. But they maxed out the amount they could pull for a loan. However, high gas prices, medical, cell phone, and food became a priority over the monthly payment. Then add a job pay cut because of the closing recession, and now result fall behind a little at a time for a monthly bill.
Always remember, when pulling a home loan, pull money from your paycheck to pay you first (retirement), food, gas to work, and etc, but remember to add a safety margin to put away incase of an emergency, then worry about a loan.
Always remember, when pulling a home loan, pull money from your paycheck to pay you first (retirement), food, gas to work, and etc, but remember to add a safety margin to put away incase of an emergency, then worry about a loan.
Greed
Scam artists convincing people they could actually afford these mortgages.
Stupid people acting impulsively living beyond their means.
The vid holds truth. However why did the bush admin over the past 8 years not address the 8000 pound elephant in the room??
Way too complex to simply blame dems.
Scam artists convincing people they could actually afford these mortgages.
Stupid people acting impulsively living beyond their means.
The vid holds truth. However why did the bush admin over the past 8 years not address the 8000 pound elephant in the room??
Way too complex to simply blame dems.
It came in the form of a law signed by billy clintoon in 1999. It just became a snowball rolling down the hill. It was not de-regulation but rather over regulation that caused this mess along with greed and silly people who were greedy enough and stupid enough to buy properties that they could not afford i the first place.
I had to go close on a deal at the title company yesterday. The agent that handled my closing has been working as a closing agent for over 30 years. I ask her how many times she's witnessed homeowners signing loan documents at gun point by their lenders. She had never seen it. When will we take responsibility for are own actions? If you got sold a bad loan by a lender shame on you. If you can't read or understand loan documents you should hire someone to represent you. This is not the goverments fault or the banks fault. It's the fault of the homeowners who sign the documents with out learning enough about the loan product they were getting.
Greed
Scam artists convincing people they could actually afford these mortgages.
Stupid people acting impulsively living beyond their means.
The vid holds truth. However why did the bush admin over the past 8 years not address the 8000 pound elephant in the room??
Way too complex to simply blame dems.
Where have all the dollars gone?
Long time passing
Where have all the dollars gone?
Long time ago
Where have all the dollars gone?
Gone to greed every one
When will they ever learn?
When will they ever learn?
When we were watching American shows like Nanny 911, we'd see couples with 2 or 3 kids living in a big fancy shack. The husband worked and the wife stayed at home. We always thought how the hell can these people live in such a nice house with 1 income? My wife and I both work and we pay through the nose for our nice home. We finally get why these people were able to live in these shacks. They had upside down mortgages.
Personal Responsibilty
Financial Education
Long term Budget and Savings Plan
Boy you guys sure are hardcore. You make it sound like if I just saved more than I spent, I wouldn't have problems with money.
Thought this was instructive
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1
Financial Education
Long term Budget and Savings Plan
Boy you guys sure are hardcore. You make it sound like if I just saved more than I spent, I wouldn't have problems with money.
Thought this was instructive
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1
crisis?
think about a loan, the lender makes lots of money on fees/closing costs, then they collect monthly payments that are mostly all interest, the principle remains the same or sometimes grows with certain loans when they add part of the interest to the back of the principle....so they keep all this cash, maybe a year or two worth of payments, and, the principle is unchanged.....now a small percentage overall of borrowers can't repay these terms, meanwhile the lenders keep all the interest and fees and stick us with lots of upside down, uncollectable debt......then they frame this as a "crisis for us"......this is one of the biggest ripoffs in our history.....700 billion and they only need a weekend to put it together....
think about a loan, the lender makes lots of money on fees/closing costs, then they collect monthly payments that are mostly all interest, the principle remains the same or sometimes grows with certain loans when they add part of the interest to the back of the principle....so they keep all this cash, maybe a year or two worth of payments, and, the principle is unchanged.....now a small percentage overall of borrowers can't repay these terms, meanwhile the lenders keep all the interest and fees and stick us with lots of upside down, uncollectable debt......then they frame this as a "crisis for us"......this is one of the biggest ripoffs in our history.....700 billion and they only need a weekend to put it together....
