Commanders Post at The Warpath - View Single Post - Understanding The Issues: Subprime/Housing Crisis

That Guy · 06-20-2008, 03:01 AM

gotta go mccain on this one. you can't just try to bail everyone out that decided to buy a house they couldn't afford with other people's money.

there's not enough cash and i don't want to be penalized and forced to pay for someone else's property because i was responsible with my money and they weren't.

it's not like these predatory lending scheme weren't well known about two years ago.

they sell them by telling you that yes, you can afford this huge house on a low wage job, just let me know if you'd rather pay 5400, 4600, 3400, or 2200 a month for it. (btw, the 2200 in this example isn't even a minimum payment). of course most of the victims choose the lowest payment, and after three years the 750k house loan (that they've paid the bank about 79k on) is now a 1.2mill loan with a higher rate... short version is, if you couldn't even afford a 600k home, and got talked into taking a bad loan for 750k home that you can't possibly pay down, how are you going to pay it off after it balloons to 1mill+?

the guys that sold those loans got up to 40k PER SALE, and the banks were stupid and greedy to think that people without good credit and without financial means could possibly pay these things off after they got dug in so deeply.

either way, i'm all for forcing the lenders to convert them to fixed rates or adjusting them to new "foreclosure invested" market value, but if there's a straight type of bail out - A) there's not enough money for it, and B) that's punishing those that didn't decide to buy things they can't possibly afford.

to help people get into houses, you already have first time home buyer (anyone) and VA loans (military/ex military).

i don't really know much about the bankruptcy laws, so i'd have to look up obama's last point to see if there's merit there.

seriously though, this isn't a surprise and a simple 4 week finance class in high school could have prevented this... i'm shocked they don't teach basic finance in school, since it'd be the most important class you could take as far as life skills. the military forces you through the basics mutiple times and has finance counsel available (for those that have questions and those that are command directed to get help), and maybe more access to advisors and basic help/education is the best idea for future prevention.

06-20-2008, 03:01 AM	#2
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 43 Posts: 17,620	Re: Understanding The Issues: Subprime/Housing Crisis gotta go mccain on this one. you can't just try to bail everyone out that decided to buy a house they couldn't afford with other people's money. there's not enough cash and i don't want to be penalized and forced to pay for someone else's property because i was responsible with my money and they weren't. it's not like these predatory lending scheme weren't well known about two years ago. they sell them by telling you that yes, you can afford this huge house on a low wage job, just let me know if you'd rather pay 5400, 4600, 3400, or 2200 a month for it. (btw, the 2200 in this example isn't even a minimum payment). of course most of the victims choose the lowest payment, and after three years the 750k house loan (that they've paid the bank about 79k on) is now a 1.2mill loan with a higher rate... short version is, if you couldn't even afford a 600k home, and got talked into taking a bad loan for 750k home that you can't possibly pay down, how are you going to pay it off after it balloons to 1mill+? the guys that sold those loans got up to 40k PER SALE, and the banks were stupid and greedy to think that people without good credit and without financial means could possibly pay these things off after they got dug in so deeply. either way, i'm all for forcing the lenders to convert them to fixed rates or adjusting them to new "foreclosure invested" market value, but if there's a straight type of bail out - A) there's not enough money for it, and B) that's punishing those that didn't decide to buy things they can't possibly afford. to help people get into houses, you already have first time home buyer (anyone) and VA loans (military/ex military). i don't really know much about the bankruptcy laws, so i'd have to look up obama's last point to see if there's merit there. seriously though, this isn't a surprise and a simple 4 week finance class in high school could have prevented this... i'm shocked they don't teach basic finance in school, since it'd be the most important class you could take as far as life skills. the military forces you through the basics mutiple times and has finance counsel available (for those that have questions and those that are command directed to get help), and maybe more access to advisors and basic help/education is the best idea for future prevention.