Comments on: Quit blaming poor people http://rc3.org/2008/01/25/quit-blaming-poor-people/ Strong opinions weakly held Mon, 15 Mar 2010 23:37:05 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Cameron Barrett http://rc3.org/2008/01/25/quit-blaming-poor-people/comment-page-1/#comment-2315 Cameron Barrett Fri, 25 Jan 2008 15:16:00 +0000 http://rc3.org/2008/01/25/quit-blaming-poor-people/#comment-2315 <p>I would also argue that this problem was confounded by the rapidly increasing prices/values of houses between the mi-1990s and today. I watched as houses became more and more valuable each year and wondered how that could be sustained -- yet so many people were buying because the banks loosened their mortgage requirements, likely because few people could afford a mortgage under the old requirements.</p> <p>Secondly, the banks made it easy for people to roll their houses over into new mortgages with better rates, which freed up money that the homeowners could spend, which they did -- which is partially why the economy has been touted as "good" for the past 5-10 years. But now people have maxed out their "house ATM" and can't withdraw any more money from its value.</p> <p>It's a recipe for an economic disaster. I'm actually happy that I do not own a house right at this moment but will surely be looking to buy on the cheap after the market is flooded with homes that people cannot afford.</p> I would also argue that this problem was confounded by the rapidly increasing prices/values of houses between the mi-1990s and today. I watched as houses became more and more valuable each year and wondered how that could be sustained — yet so many people were buying because the banks loosened their mortgage requirements, likely because few people could afford a mortgage under the old requirements.

Secondly, the banks made it easy for people to roll their houses over into new mortgages with better rates, which freed up money that the homeowners could spend, which they did — which is partially why the economy has been touted as “good” for the past 5-10 years. But now people have maxed out their “house ATM” and can’t withdraw any more money from its value.

It’s a recipe for an economic disaster. I’m actually happy that I do not own a house right at this moment but will surely be looking to buy on the cheap after the market is flooded with homes that people cannot afford.

]]> By: Mike http://rc3.org/2008/01/25/quit-blaming-poor-people/comment-page-1/#comment-2313 Mike Fri, 25 Jan 2008 09:27:37 +0000 http://rc3.org/2008/01/25/quit-blaming-poor-people/#comment-2313 <p>Banks should be required to service their own loans. Any time you separate risk so far from the source, you will end up with a bubble, and bad decisions all along the way.</p> <p>But in the end, the banks and Wall Street boys will get away with it all, as the poorer people get screwed over, as they all do.</p> <p>In my opinion, 90% of Wall Street needs to be in federal prison right now.</p> Banks should be required to service their own loans. Any time you separate risk so far from the source, you will end up with a bubble, and bad decisions all along the way.

But in the end, the banks and Wall Street boys will get away with it all, as the poorer people get screwed over, as they all do.

In my opinion, 90% of Wall Street needs to be in federal prison right now.

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