It's not just that some of us were more fiscally conservative. Some people really did hit a tough road with lay-offs and downsizing they didn't anticipate. Likewise, some people really don't understand what they are getting themselves into and there are many unscrupulous people out there ready to take advantage of those who don't get it....the whole thing is sad and maddening all at once. Yes, some people took massive risks knowing it's a massive risk but I suspect that on the whole, they make up a smaller percentage of the problem than those who really didn't understand or those who just had a run of really bad luck.
And Yoss, I know a few "massage therapists" who make a lot more than you suggest....
"The most valuable things in life are not measured in monetary terms. The really important things are not houses and lands, stocks and bonds, automobiles and real state, but friendships, trust, confidence, empathy, mercy, love and faith. " -Bertrand Russell V. Delong
Posts: 3233 | Location: Glen Ellyn, IL | Registered: April 04, 2003
You can guess all you want. This article is a load of BS. No one put a gun to the head of these lenders to ignore simple fiscal prudence. To continue to point the finger at these consumers as "the" cause, is like pointing the finger at children for their tooth decay. After their grandparents have visited. First time homebuyers are the key to the real estate market. Relaxed standards are a choice by the lender.
It reminds me of the same red herring Blame Game used by the medical sector - blame big lawsuits and lawyers for the out-of-control costs, even though they account for only a tiny fraction of the aggregate cost.
Originally posted by ronkas: You can guess all you want. This article is a load of BS. No one put a gun to the head of these lenders to ignore simple fiscal prudence. To continue to point the finger at these consumers as "the" cause, is like pointing the finger at children for their tooth decay. After their grandparents have visited. First time homebuyers are the key to the real estate market. Relaxed standards are a choice by the lender.
Ron, I'll admit I didn't read the article Yoss cited, but I can't understand how anyone thinks the lenders are more to blame than the borrowers. What people seem to lose sight of is that in a mortgage transaction there is a note AND a mortgage. Regardless of the "relaxed standards," two parties agreed to a loan transaction. The borrower promised to pay back the loan. Loan repayment was not contingent upon the security maintaining its value. Neither side is free from blame, but if the borrowers simply did what they promised to do we would not be in this mess. Blaming the problem on the lenders ignores the stupidity of the consumer. I think it is like the tech bubble in the stock market, everyone was a genius stock picker until the bubble burst. Likewise, everyone long real estate was Donald Trump until recently.
I am a dyslexic agnostic insomniac. I lay awake at night wondering if there is a dog.
I'm not looking to let the lenders off the hook-they were greedy & stupid. But I'm also looking for some personal responsibility.
Didn't know what they were getting into? Whose fault is it that they didn't get themselves familiar with the terms and what ARM means?
The bad luck thing, I will concede, the economy sucks and it's tough to get a job in certain industries right now. A lot of my friends who worked for United for 20+ years and got laid off this summer, they are in a world of hurt. However, there have been warning signs there for years and yet many of them choose not to update their resumes or get involved in networking.
If America is to get back to greatness, we need to get back to the thinking that this is a land of opportunity, not entitlement.
This message has been edited. Last edited by: Yossarian,
The people who took out the loans don't have the houses after they are foreclosed upon and they now have bad credit ratings. Whether or not they were irresponsible, they are now punished by not having a house or good credit. The companies that made these loans made tons of money, are now getting bailed out and without regulation, they are free to do it all again. That's the difference. It doesn't matter if the fault is shared, if the punishment isn't.
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