Predatory Borrowing...
So much as been said about the American Real Estate Market 48 firms have gone . My opinion is that this sentiment is over-rated, but like most most macro financial set-ups it does not matter whether it is overrated or not. The emotions of the moment, coupled with a drop in confidence run the show.
Picture client A with mortgage payment of about $5000 where the joint income (husband and wife) is about $5,500. When asked why they made such a ridiculous choice, their answer was; "We were cajoled into buying this house". Can someone tell me what a store clerk is doing at the Ferrari dealership?
Inasmuch as lenders are driven by greed (that's why they are investors), home buyers who have refused to cut their coats according to their cloth carry as much blame as the lenders themselves. Home buyers should stop whining and fork over those huge payments. Got to go Client A is on the phone again.
Picture client A with mortgage payment of about $5000 where the joint income (husband and wife) is about $5,500. When asked why they made such a ridiculous choice, their answer was; "We were cajoled into buying this house". Can someone tell me what a store clerk is doing at the Ferrari dealership?
Inasmuch as lenders are driven by greed (that's why they are investors), home buyers who have refused to cut their coats according to their cloth carry as much blame as the lenders themselves. Home buyers should stop whining and fork over those huge payments. Got to go Client A is on the phone again.
For all that, “predatory lending” is a woefully inadequate explanation of
the sub-prime turmoil. If sub-prime lending consisted only of lenders exploiting
borrowers, after all, it would be hard to understand why so many lenders are
going bankrupt. ... Focusing on lenders’ greed misses a fundamental part of the
sub-prime dynamic: the over ambition and overconfidence of borrowers.
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