The RE Subprime Mortgage will collapse the economy?
by Mortgage Rates on Sunday, October 17th, 2010 | 4 Comments
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What does the religion or race of the kid have to do with anything?
You complain that “WHITE CHRISTIAN KIDS” are going hungry. What a racist and bigoted view. And you are an LPN. In my opinion, a person who is so racist and bigoted should never hold a position where they have to provide care to the public. That person’s views will cause them to provide lesser service to those that they hate.
Lets look at what you are talking about. Yes, sub prime lenders are being pretty stupid with their lending. However, it takes two to tango. A lot of people borrowing money are being pretty stupid as well. They are jumping into loans without investigating the responsibilities and ramifications. There are people who are getting mortgages who do not have jobs. The lenders are stupid to give these people loans and the people accepting these loans are stupid as well for taking them.
One of the biggest problem with the US is that people are just too eager to take on debt. People are not saving money. They are going deeper into debt. According to a recent government survey, the past year was the first time since the great depression that more people in the US went into debt than saved. I know one person who makes about $50,000 a year and has $80,000 in credit card debt. He rents a house and has all sorts of nice things in it. Of course, those nice things won’t last nearly as long at the credit card debt.
Too many people are spending tomorrow’s paycheck today. When tomorrow comes and the paycheck has to pay for what they bought earlier they will suffer.
The economy is pretty weak. I wouldn’t say collapse, but then again I wouldn’t say robust either. I know gas is going easily hit $3.50 this summer. That’s why I drive a 2006 Hyundai Accent 28 / 37 and my wife drives the “big car” a 2007 Hyundai Elantra 28 / 36.
Reality is the Elantra gets about 25/32, but the Accent is right on the EPA estimate. I could afford more, and because I get such good mileage, I’m not concerned too much over prices. I’d be concerned if I drove a SUV however…
I am ready to snap up a few good homes when that happens.
http://www.helium.com/tm/226327/planning-buying-months-problems