About ARMs and legs
Apr. 2nd, 2007 11:52 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
cryowizardhttp://fe3.news.re3.yahoo.com/s/afp/20070325/bs_afp/useconomypropertypolitics
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/22/AR2007032201973.html
What is up with people worrying about "lending practices" and "sub-prime mortgages" to the point of trying to get the government involved?
What I don't get is why should anyone give a shit about people who can't read fine print.
If you are taking out a mortgage, especially an ARM, and dont know how it is going to go payment-wise -- you fucked up!
If you have shitty credit and people just all of a sudden give you a mortgage at a lower-than-normal rate, and you don't bother wondering what's up -- you fucked up!
Two million people apparently fucked up. Bad for them, I agree. So what are we going to do -- have taxpayers compensate them for their own stupidity?
Same goes for the lending companies -- if they were giving money to people with flimsy financials, they were wading into risky waters. They deserve to go under like a fucking rock -- it's just a result of bad business.
What I really don't want to hear is "bailout". It's sad to see people lose their homes, but one should know about the origins of free cheese. If it looks too good to be true -- it probably is, and as sad as losing one's home may be, no other person should have to give up his own money to bail out someone who made a financial mistake.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/22/AR2007032201973.html
What is up with people worrying about "lending practices" and "sub-prime mortgages" to the point of trying to get the government involved?
What I don't get is why should anyone give a shit about people who can't read fine print.
If you are taking out a mortgage, especially an ARM, and dont know how it is going to go payment-wise -- you fucked up!
If you have shitty credit and people just all of a sudden give you a mortgage at a lower-than-normal rate, and you don't bother wondering what's up -- you fucked up!
Two million people apparently fucked up. Bad for them, I agree. So what are we going to do -- have taxpayers compensate them for their own stupidity?
Same goes for the lending companies -- if they were giving money to people with flimsy financials, they were wading into risky waters. They deserve to go under like a fucking rock -- it's just a result of bad business.
What I really don't want to hear is "bailout". It's sad to see people lose their homes, but one should know about the origins of free cheese. If it looks too good to be true -- it probably is, and as sad as losing one's home may be, no other person should have to give up his own money to bail out someone who made a financial mistake.
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no subject
Date: 2007-04-03 03:53 pm (UTC)The global (well, global in the US) issue is the savings rate and over-leveraging. If there is a run on the banks tomorrow, you and i, and a few other "prudent" savers, who did not fuck up will get their savings, while all others will be left without money. And we've been there before - in the early 1930s. The entire Fed system was revamped precisely to prevent such crises and offer buy-outs where necessary in order for the entire system to be stable. And the fact that the Fed is willing to accept its mistake and step in now is a big indicator that it IS a big deal that 1.19% of home loans are in foreclosure.
It may not crash the system, alone, but given the American 0.2% savings rate, of which i wrote about 2 years ago after a lecture by a republican financier, the system IS fragile and the Fed should be careful to preserve it. Just because you and i do not see the iceberg doesn't mean that the piece of ice we see is not a tip of it. Those people writing for NYT and working at the Fed are not as stupid as the morons who took out the ARMs. But those idiots who took out ARMs have the right to bear arms. Something to keep in mind for you and me.
I love it how you never fail to get personal on the first reply. Keep'em coming! Stay true to yourself! He-he-he :)
Absolutely not meant to be personally offensive or insulting. My apologies if you read it that way. The idea i was trying to communicate was that you differentiate yourself (and others like you) who do not "fuck up" from the people who took out ARMs. So the longer version of that statement is "so you are smarter, and you and everyone else knew that already...now what?"