Wednesday, May 30, 2007

You'll Have A Sub-Prime Loan - And Like It!

CNN Money uncovers a less-than-startling fact about the real estate industry and the intelligence level of many of it's consumers over the last 9 years. Apparently thousands of Americans families who purchased homes and would have otherwise qualified for prime mortgage loans, were sold riskier, more expensive, sub-prime mortgage loans instead.

Was it the greedy, unregulated mortgage brokers' fault?
Was it because English was not the first language to the homebuyer?
Was it because the pigment of the buyers skin had more melanin in it?
Was it because the vampiric, self-serving Century 21 realtor incessantly urged the homebuyer: "We can do this!"

Or was it because the American homebuyer, when it comes to money, is financially illiterate and unable to balance instant gratification with delayed gratification inside his/her cretinous gord?
My vote goes to the latter.


Anonymous said...

You named all the players..fromk dopey borrowers to greedy flippers to pos realtors, appraisors, builders Mtg brokers. Each one of these sleezy groups played a role. All must pay for it too.

Justin said...

When the dot com mania was raging, anyone who questioned it was looked upon as a fool, a throwback to horse and buggy days, a know-nothing of the 'new' economy or "they just didn't get it".
Well those who avoided the dot coms really didn't get it
-losses in stock value that is.

The housing bubble was the same difference, everybody wanted to get rich off of houses and anyone who didn't participate was a fool, a throwback to horse and buggy days, a know-nothing of 'new' economics or they "just didn't get it"-
losing money that is.

For all these dopes who thought they could flip houses or wanted a mortgage they couldn't afford, how many (or few) bothered to get a lawyer to look over the documents?

I know that the legal profession
(lawyer, attorney, shyster, call them what you will) is still less popular than these real estate and sub prime mortgage clowns,
but if you swim with the sharks it isn't a bad idea to have a shark on your side to make sure everything is on the up and up.