[Spridgets] Huh???

[William M. Gilroy]

   You  are right, many people could not read the fine print and took out
   more  money  than  they  could  afford.   Heck when I was purchasing a
   house   3 years ago they told me I could borrow up to $1,000,000, if I
   got  a mortgage that would adjust or interest only loan.  I decided to
   borrow much less.
   But you have to ask the question "How sound are the business practices
   of  a company who would offer such a loan?"  Turns out, not very sound
   at all.  You can  blame the people who signed the loans but most of us
   on  the  list  would not have based our business on such plans.  So it
   turns  out a bunch of bankers made a bunch of unsound bets, got richly
   reward, and now the taxpayers are stuck with the cost of savings these
   banks because they are to big to fail.
   Twenty years ago you need 20% down to buy a house and your total bills
   could  not  exceed  ~30%  of  your  gross  salary.   That was consider
   standard  lending  practices.   What changed is banks decide that they
   could  make  more  money  by writing risky loans.  You are correct Jim
   this  has  already  cost me; my company is not giving raises this year
   due  to  declining  revenue  and  I am not in the banking business.  I
   place  the  blame  squarely  with the people who made the risky loans,
   they should have known better.
   I  am  pretty sure if ran my business like the banks I would be out of
   work. As my grandfather used say, "It is good to be king." or "Steal a
   loaf of bread and go to jail, steal a railroad and go to Congress."
   Bill
   Jim Johnson wrote:

Look in your pocket.  Whatever change is there is all you are going to have
when you get done paying the mortgages of those who don't know how to read
the fine print on a loan form.

Now THAT'S "Change you can believe in"!

Cheers!!
Jim

On Wed, Feb 25, 2009 at 1:22 PM, WFO Herb <froggi60 at gmail.com> wrote:

I'm still waiting for the 'change'.

Herb
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