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explain then how paying of your student loans is "making poor financial decisions"? explain please how serving the country in the armed forced is "making poor financial decisions" (VA loans also government backed and also require around 3.5% down)?
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and i think you have some anger towards a stereotype because you have not said for example, that mortgages given to young doctors and lawyers that completely ignore student loan debt as "making poor financial" decisions. these loans let them buy with far less than 20% and with little or no income on record as well as ignoring 60K, 80K, or 100K in student loan debt.
so your stereotype of the FHA loan seeker is just that a stereotype, why is that, why do you have it towards FHA/VA loans and not any of the tens of other loan options out there that let buyers start with less than 20%
i do not care to explain any of this. ultimately, i do not care about people's situations. i care about them not being able to pay their loans and expecting me to pay it for them.
why is it that as "consumers" we are supposed to be so THANKFUL and appreciative at having "historically" low rates ???? while the statistics on the moving average is, in fact, VERY low and is eye opening...
what exactly does a BANK borrow at ???? about 0.25% ...so, even if mortgages were 3.5% they'd still be making BILLIONS. it's not our fault that they OVER-LEVERAGED 10-fold and decided to be completely reckless in their lending practices.
I am a large advocate of personal responsibly, but lets talk FACTS: 98% of Americans have "buying a house" as the LARGEST financial transaction in their life... what does this mean ? it is RIDDEN with emotion... so, is the onus NOT on the Real Estate Agents/Brokers, Underwriters, and ultimately the banks ????? MORE SO than the consumer ?
as soon as ONE person in the value chain approves a process, or a PHASE GATE, they then should become owners of that risk -- so why is the consumer really getting crapped on all this time ?
when the banks/underwriters saw all the numbers, WHY did they approve it ????? if they saw no w-2, no income, over-leveraging... they SHOULD have been the acting agent (with no emotional investment) that said no.
so I want everyone to STOP blaming the people and place the blame on the GREEDY chain/system that caused this mess. the biggest irrationality we have is that EVERYONE is rational... we know they are not, this is why there are checks and balances, processes and phase gates -- EACH of those gates failed to protect the integrity of the system and its process. people who DO need help are NOT getting it... the SAME banks/system that f'd up are the ones taking all of our money.
why is it that as "consumers" we are supposed to be so THANKFUL and appreciative at having "historically" low rates ???? while the statistics on the moving average is, in fact, VERY low and is eye opening...
what exactly does a BANK borrow at ???? about 0.25% ...
so, even if mortgages were 3.5% they'd still be making BILLIONS.
This is a fallacy.
Those rates only apply to very short term loans. Rates on long term fixed loans are much higher. The main reason that they're higher is that even if you assume that they have no credit risk, they come with interest rate risk.
If the bank wants to borrow on a long term fixed basis, they need to pay at least as much as the US treasury for the privilege. The 30 year treasury yields are about 4.7% now.
why is it that as "consumers" we are supposed to be so THANKFUL and appreciative at having "historically" low rates ???? while the statistics on the moving average is, in fact, VERY low and is eye opening...
what exactly does a BANK borrow at ???? about 0.25% ...so, even if mortgages were 3.5% they'd still be making BILLIONS. it's not our fault that they OVER-LEVERAGED 10-fold and decided to be completely reckless in their lending practices.
I am a large advocate of personal responsibly, but lets talk FACTS: 98% of Americans have "buying a house" as the LARGEST financial transaction in their life... what does this mean ? it is RIDDEN with emotion... so, is the onus NOT on the Real Estate Agents/Brokers, Underwriters, and ultimately the banks ????? MORE SO than the consumer ?
as soon as ONE person in the value chain approves a process, or a PHASE GATE, they then should become owners of that risk -- so why is the consumer really getting crapped on all this time ?
when the banks/underwriters saw all the numbers, WHY did they approve it ????? if they saw no w-2, no income, over-leveraging... they SHOULD have been the acting agent (with no emotional investment) that said no.
so I want everyone to STOP blaming the people and place the blame on the GREEDY chain/system that caused this mess. the biggest irrationality we have is that EVERYONE is rational... we know they are not, this is why there are checks and balances, processes and phase gates -- EACH of those gates failed to protect the integrity of the system and its process. people who DO need help are NOT getting it... the SAME banks/system that f'd up are the ones taking all of our money.
There is no way that banks can borrow money, on anything but overnight style terms, at less than the Federal Government can.
It is exactly our fault that banks over leveraged. The government removed almost all the regulations restricting such behaviour, which would have been fine if they hadn't then set interest rates to a tiny fraction of that the market would have set them at. The banks then acted perfectly rationally - leverage up and make money while the making is good, when it blows up it'll be someone elses problem.
Since "government of the people, by the people, for the people" is the system it's our fault. Well actually let me rephrase that. It's your fault, it'd be a felony for me to vote so clearly I don't get a say and hence I'm blameless, baby
If the government let them go bankrupt then maybe the lesson would be learned and next time round they wouldn't make the same decision. But of course the government bailed them out so the lesson learned is: we keep the profits, the government takes the losses. So next time round it'll be: 50:1 leverage, where do I sign?
so I want everyone to STOP blaming the people and place the blame on the GREEDY chain/system that caused this mess. the biggest irrationality we have is that EVERYONE is rational... we know they are not, this is why there are checks and balances, processes and phase gates -- EACH of those gates failed to protect the integrity of the system and its process. people who DO need help are NOT getting it... the SAME banks/system that f'd up are the ones taking all of our money.
No way. People love to blame "institutions" and "big business." It's very convenient. I feel very badly for people who have lost their homes b/c of unexpected medical bills, or a job loss, etc. I have zero sympathy for anyone who has lost their home b/c they took out bigger loans than they should have with no contingency plan. NONE. And I don't want to foot their bill.
No way. People love to blame "institutions" and "big business." It's very convenient. I feel very badly for people who have lost their homes b/c of unexpected medical bills, or a job loss, etc. I have zero sympathy for anyone who has lost their home b/c they took out bigger loans than they should have with no contingency plan. NONE. And I don't want to foot their bill.
Ditto!
The consumers that are part of the sub-prime mess is FAR from BLAMELESS! Many investors and consumers that got caught in this mess either got too greedy or over-leveraged. They thought their property-equity will keep on rising...so they cashed-out and refinance continuously in one of those sub-prime loans. People didn't want to save and wanted to buy, buy, buy on credit and this is why the country is in this mess and the tax-payers are footing the bill- again.
I sympathize with those we are unemployed and got into debt from medical expenses and unforseen occurences, but not those that over spent on new cars, clothes, large-screen TV, etc.
Hopefully people, including the government should learn to save up for a rainy day/ recession!
I suspect that many of you work in the financial services sector, so your opinions are far from objective...
dont take the loan if you cant afford to pay it back. i dont care about the emotion involved in the decision. that logic is silly. that because its a largely emotional decision you are not responsible for it. killing someone is also a very emotional decision, you think people shouldnt be responsible for it either.
I suspect that many of you work in the financial services sector, so your opinions are far from objective...
Actually, I work for a federal regulator and I have actually gone through loan files for these sub-prime lending. I can see the spending and borrowing habits of a people that got in way over their heads. The mortgagors/bankers gave the consumer correct disclosures...most borrowers knew what they were getting themselves into. But the American culture is about immediate gratification, so screw future payments. 'I'll be fine for the next two years, before the balloon payments...I'll just refinance later based on an expected housing price appreciation'.
Objectivity has nothing to do with it...no one is a clean slate. If you are a home-owner, tax-payer, etc...you are not "objective". Everyone bases their opinions upon their experiences.
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