I agree the banks carry a bunch of the blame, but let's be serious here.
People were taking cash out refinancing to pay off credit card debt, but then immediately running up the same amount, if not more, credit card debt. (I know at least 6 people that did that very thing.)
They decided they just had to have that $750,000 dollar house, despite the fact they barely made $100K a year between them, so they shopped around until they found a bank that would lend to them.
For crying out loud, my brother took out a 105% mortgage because he has a whopping $0 dollars to put down. He even put the application fee on his credit card.
Sure, the banks have no right to claim any grievance here, they made it easy for people to be stupid, but I think it is the people that knowingly borrowed beyond their means that are the true root cause.
2 comments:
Well, it's actually some Americans blame. There are a few of us who actually live within our means.
We got punished every bit as much as those who misbehaved with their money.
It sucks.
I'm with anon on this one.
I agree the banks carry a bunch of the blame, but let's be serious here.
People were taking cash out refinancing to pay off credit card debt, but then immediately running up the same amount, if not more, credit card debt. (I know at least 6 people that did that very thing.)
They decided they just had to have that $750,000 dollar house, despite the fact they barely made $100K a year between them, so they shopped around until they found a bank that would lend to them.
For crying out loud, my brother took out a 105% mortgage because he has a whopping $0 dollars to put down. He even put the application fee on his credit card.
Sure, the banks have no right to claim any grievance here, they made it easy for people to be stupid, but I think it is the people that knowingly borrowed beyond their means that are the true root cause.
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