Quote:
Originally Posted by lch
The problem is partly because the banks started trading those debts, yes, but on the other hand it's because people were living way over what they were possibly able to pay back, too. The fun thing to consider: what we see right now is only the beginning.
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Again, in case you missed my earlier post, my family belongs to the segment of the population affected by "distressed loans". Though we were first lied to, and our original mortgage was about 30% higher than our agent quoted us, it was within our means so we went through with it. We carried that loan for 5 years, and though it may have been a bit of a burden, it was worth it, and we paid it. Over a 6 month period, our payments got hiked by another 30%, due to being tricked into an Adjustable Rate Mortgage. So you see, we could pay the loan that we took, we just couldn't pay 30% more still, as they thought they could milk from us, due to a cleverly worded loan, and their reassurances that with our payment history, the rate would most likely slightly decline, lowering our payments.
These lenders were incredibly predatory, and shifting the blame to the buyers completely ignores not only the lending practices that bordered on usury, but also the devious methods that agents (like car salesmen) use to get you into the largest home you can possibly afford.
And no, I do not wish to see us go back to the barter system. However, our currency needs to at least represent something more tangible than "trust", because I'll tell you one thing, no bank has ever shown me a shred of trust, and they get none back from me. Apparently that makes my money worth nothing, unfortunately my lack of trust does not void the cruelly exhorbitant loan that I am defaulting on.
And Atrocities, I am in full and complete agreement with your last post. I'm glad, that we can find some mutual ground to stand on.
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