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Quote by: rmnunez I don't understand this mortgage crisis problem at all. |
Yes, it's quite obvious that you don't.
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Quote by: rmnunez If the answer is to reduce bank profits, they won't lend money as easily to finance these purchases. |
Then perhaps the banks shouldn't be making their profits by depending on a way overpriced housing bubble, sold to people who can't afford it, to keep on expanding forever and ever. But they did, and now not only are 100s of thousands of Americans being thrown out of their homes, but the banking industry is left holding billions in uncollectable mortgage loans... debts they've been making even more profits on by trading back and forth internationally... hence the threat to the global economy.
And there's worse on the horizon, rm, thanks in part to our hero, George Bush and his bankruptcy "reform".
Credit Card Debt Next Crisis? --"The sub-prime mortgage crisis has the attention of many, but credit card defaults are rising, up 30%.
A study of the new bankruptcy law accurately reports that the new law has doubled the cost to consumers to file, whether Chapter 7 or Chapter 13."-- Dec. 2007
Debt crisis spreads to plastic --"Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come."-- Dec. 2007
New debt crisis is on the cards - literally --"It seems US consumers, who had previously been borrowing against the value of their properties, resorted to other forms of borrowing when they had exhausted their access to mortgage credit. And banks, which no longer found mortgage lending lucrative, encouraged credit card consumers with lax lending standards."-- Dec. 2007
Making profits by handing out mortgages and credit like so much candy to anyone who asks for it is just plain, stupid greed, Rm.
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