?

Log in

No account? Create an account
Wakum Mata!
Politcally Incorrect Musings
One has to wonder 
17th-Sep-2008 07:04 am
Money
I have been thinking about the the whole subprime debacle.

Why did it even happen? Making loans to people that you KNOW who won't be able to pay back is just stupid. Yeah. The banks HAD to know. It is their job to.

But greed.

Yes, sheer greed came into play.

You may have heard "money is the root of all evil", but that is a dreadful misquote. The actual quote is:

1 Timothy 6:10 (New International Version)
New International Version (NIV)

Copyright © 1973, 1978, 1984 by International Bible Society

10 For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.




Yeah. That sums it up. The LOVE of money, not the money itself. Money is a tool. I like to compare it to a circular saw. Lack of understanding and proper care will cause injury.

Now where did this greed come from? The banks, as I mentioned, already KNOW these "subprime" people will eventually default and then the bank will own the house.

Exactly.

Rising house valuations.

The bank gets these suckers to buy the house for them. The bank gets paid for a few years. The sucker defaults. The bank gets the house for a song. The bank then resells the house at its new and higher market value. KACHING!!!

But the housing market values collapsed. The banks couldn't resell their foreclosures. And then we get to the part about "many griefs". Banks, now penniless, have to close their doors.

Anyway... That is my $0.02 on the mess we are in. Greed. Greed by the banks and the people that run them.
Comments 
17th-Sep-2008 02:46 pm (UTC)
I'm not sure buying houses was the motive of the lenders, but love of money does seem to have been the root of this evil.
17th-Sep-2008 04:23 pm (UTC)
Some (small) part of it is stupidity n the home buyers' end too. NEVER buy more house than you can afford. There are standard well-known formulas to figure out how much you can afford.People who live beyond their means are just as responsible as the lending institutions.
17th-Sep-2008 07:05 pm (UTC)
Agreed that some people are too stupid with their money (blame the government education?). But the point is that the banks should not have loaned to those individuals in the FIRST place.

The banks KNEW those people could not afford that fancy home. Those people that bought it were blinded by their own form of greed and the banks took them and for a ride.

17th-Sep-2008 10:34 pm (UTC)
The buyers aren't sheep - nobody forced or deceived hem into taking the money. It wouldn't have happened if people had been realistic about their finances and not signed the papers. Yes, the lenders are partially responsible, but the buyers are JUST as responsible.
This page was loaded Nov 22nd 2017, 9:50 pm GMT.