| Re: Are consumer to blame at all for mortgage/financial crisis ? |
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Group: alt.philosophy · Group Profile
Author: SeanSean Date: Sep 19, 2008 22:32
"Ed" earthlink.net> wrote in message
news:2d5ce8d6-4e9d-4b3d-a22f-5bd8703830b1@f36g2000hsa.googlegroups.com...
On Sep 19, 12:41 pm, Paul gmail.com> wrote:> I'm not trying to blame the consumer. A lot of people were taken
> advantage of when buying homes and all that.
>
> My wife and I bought our first home in November at a Fixed rate. We're
> not financial geniuses, but we know enough not to get into something
> that doesn't make sense.
>
> But apparently a LOT of people bought homes with adjustable rate
> mortgages. I mean, when I was in my early twenties, one of the first
> things I was taught was you NEVER buy adjustable rate. It's the worst
> thing you could do was all I ever heard.
>
> I know there's a lot of shady dealings on wall street, and while they
> take 99%% of the blame, along with government not regulating, i would
> think 1%% belongs to the stupid people that bought those 1500 sq ft new
> construction homes or adjustable rate mortgages.
I agree, a lot of people set themselves up for failure. On the other
hand maybe they had reasons. One way of looking at what's happening
is that it isn't that much of a crisis. Oh, I suppose it could be a
crisis, but if the government bails out all the big time losers, and
also buys and ameliorates the mortgages of folks in trouble, as they
are currently planning to do, the crisis will be a fairly small one.
Maybe folks counted on that, even if they screwed up somebody would
bail them out, and, as it's turning out, they weren't all that wrong.
The crash of 1929 was a real crisis, this dip may well be a mini-
crisis if the government bails out every one they're planning on
bailing out. So the people who got in over their heads read the
situation better than those of us who bought a lesser house to keep it
affordable.
--------------------------------------------------------
Ed, the last time I looked, no one is "bailing out" anyone with a home
mortgage in trouble.
The Govt has been bailing out FF/FF Investors/bankers, ie the Chinese Govt,
not individual mortagees pushed into foreclosure.
If you imagine this "crisis" is a mini hickup, and nothing like as bad as
1929, and that the Govt. stepping into toss in a bit of $$ here and there,
and it will be all over, then you're so caught up in the American Dream,
that you really are dreaming. :)
Have another look, and stop listening to the US tv news services, and the
politicians.
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