Yes I know, I'm asking that since the amount of savings that people have plumbed and they can't really loan out on deposits anymore where is the loan money going to come from?
Like I said, investors.cpt.fass1 wrote:
Yes I know, I'm asking that since the amount of savings that people have plumbed and they can't really loan out on deposits anymore where is the loan money going to come from?
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
Savings will definitely go up if people are less able to borrow. Also, welfare reform will fix some of this issue as well.cpt.fass1 wrote:
But when people really can't afford or don't have savings, what is the bank suppose to loan?
Which is really what's happened since the 80's, the amount of savings has droped. Due to the cost of living increases and salaries not matching it.
I just want to point out something real quick: The article I posted was talking about how inner city people were defaulting at a higher rate than others. They were not talking about home loan defaults.
Article wrote:
"The financial institutions likely to be found in minority areas tended to be predatory -- pawn shops, payday lenders and check cashing services that "charge high fees and usurious rates of interest," they said in the study.
"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)
Yeah, I actually read an article in the WSJ last winter that stated that home default rates for 'risky' buyers were not noticeably different from the rest of the population. The people with the highest default rate were actually those that bit off more than they could chew by purchasing a second home in the sun belt. Since they had their first home, they could afford to let the second one default as there were really no repercussions for them. Notice that the markets that crashed the hardest were retirement areas in California, Nevada, Arizona and Florida. Cold weather states suffered relatively little from the housing crash.LividBovine wrote:
I just want to point out something real quick: The article I posted was talking about how inner city people were defaulting at a higher rate than others. They were not talking about home loan defaults.Article wrote:
"The financial institutions likely to be found in minority areas tended to be predatory -- pawn shops, payday lenders and check cashing services that "charge high fees and usurious rates of interest," they said in the study.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
Also, pawn shops, payday lenders and check cashing services aren't targeting specific races, they're targeting poor people regardless of ethnicity. So unless they are saying that only minorities are poor...
Last edited by JohnG@lt (2010-10-06 19:23:44)
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
i just drove through a neighborhood that had half it's houses for sale. and, we have a relatively strong market, and lower than average unemployment. the problem here was everyone else trying to keep up with the Joneses . . .
Problem is, most people don't realize the Joneses are in massive debt and about to be foreclosed on as well.burnzz wrote:
i just drove through a neighborhood that had half it's houses for sale. and, we have a relatively strong market, and lower than average unemployment. the problem here was everyone else trying to keep up with the Joneses . . .
"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)
it's why the wife and i bought a mortgage with a fixed rate. i could re-fi, but i'm 13 years in and don't know i could drop more than a point . . .
I am working on an additional 1K sqft. to take advantage of the low rates right now. Maybe I should go to the local Pawn shop and get a loan.
"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)
Haha well a 15 year is good right now and rates for that are in the three's..burnzz wrote:
it's why the wife and i bought a mortgage with a fixed rate. i could re-fi, but i'm 13 years in and don't know i could drop more than a point . . .
and you're probably in the 7's
But any way, they degreed to get property taxes in those Poor area's and the ony way banks would take the risks were to lend higher rates.
Again there's no such thing as Predatory lending.
It's predatory if the person honestly doesn't know any better.cpt.fass1 wrote:
Haha well a 15 year is good right now and rates for that are in the three's..burnzz wrote:
it's why the wife and i bought a mortgage with a fixed rate. i could re-fi, but i'm 13 years in and don't know i could drop more than a point . . .
and you're probably in the 7's
But any way, they degreed to get property taxes in those Poor area's and the ony way banks would take the risks were to lend higher rates.
Again there's no such thing as Predatory lending.
I don't understand, they say ok here is what you're borrowing and this is your monthly payment?
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
Some people really are massively stupid. Others are just grossly uneducated.cpt.fass1 wrote:
I don't understand, they say ok here is what you're borrowing and this is your monthly payment?
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
To prevent future disasters, it's best to set up a system where fewer people are taken advantage of.
start with fixing the education system.Turquoise wrote:
Some people really are massively stupid. Others are just grossly uneducated.cpt.fass1 wrote:
I don't understand, they say ok here is what you're borrowing and this is your monthly payment?
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
To prevent future disasters, it's best to set up a system where fewer people are taken advantage of.
But what I really don't understand, is these people got money's or a house out of the deal for a long period of time. Then the bank gets beat for the money, how is that predatory?
It depends on what the interest rate is.cpt.fass1 wrote:
But what I really don't understand, is these people got money's or a house out of the deal for a long period of time. Then the bank gets beat for the money, how is that predatory?
Some lenders have such high interest rates that most of their customers pay for themselves in a small fraction of the loan's contract.
In general, predatory lending is oriented towards encouraging people to make minimum payments, so as to maximize interest. Sometimes, this works out for the bank. Sometimes, it doesn't.
Obviously, it works often enough that they continue to loan to poor people. Granted, the CRA does make it somewhat coercive when it comes to home loans.
i lolled when the UN praised microloansTurquoise wrote:
It depends on what the interest rate is.cpt.fass1 wrote:
But what I really don't understand, is these people got money's or a house out of the deal for a long period of time. Then the bank gets beat for the money, how is that predatory?
Some lenders have such high interest rates that most of their customers pay for themselves in a small fraction of the loan's contract.
In general, predatory lending is oriented towards encouraging people to make minimum payments, so as to maximize interest. Sometimes, this works out for the bank. Sometimes, it doesn't.
Obviously, it works often enough that they continue to loan to poor people. Granted, the CRA does make it somewhat coercive when it comes to home loans.
No argument here...Cybargs wrote:
start with fixing the education system.Turquoise wrote:
Some people really are massively stupid. Others are just grossly uneducated.cpt.fass1 wrote:
I don't understand, they say ok here is what you're borrowing and this is your monthly payment?
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
To prevent future disasters, it's best to set up a system where fewer people are taken advantage of.
Let's put helmets and pads on everyone as well. Never know when someone will fall down and injure them self. Your life must suck man, you spend so much time worrying about what others do and I bet you feel helpless because you think you're smarter than most and wish you could make their decisions for them so they won't fail in life. You can't soften life for people, it makes them even dumber and more lazy. In fact, it increases the number of stupid and lazy in society.Turquoise wrote:
Some people really are massively stupid. Others are just grossly uneducated.cpt.fass1 wrote:
I don't understand, they say ok here is what you're borrowing and this is your monthly payment?
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
To prevent future disasters, it's best to set up a system where fewer people are taken advantage of.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
To a degree, yes... Natural selection does play a part in determining who lives and who dies... I'm not denying that.JohnG@lt wrote:
Let's put helmets and pads on everyone as well. Never know when someone will fall down and injure them self. Your life must suck man, you spend so much time worrying about what others do and I bet you feel helpless because you think you're smarter than most and wish you could make their decisions for them so they won't fail in life. You can't soften life for people, it makes them even dumber and more lazy. In fact, it increases the number of stupid and lazy in society.Turquoise wrote:
Some people really are massively stupid. Others are just grossly uneducated.cpt.fass1 wrote:
I don't understand, they say ok here is what you're borrowing and this is your monthly payment?
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
To prevent future disasters, it's best to set up a system where fewer people are taken advantage of.
My only concern is that when enough people fail, they can bring down the whole system (like we saw recently).
My goal is to promote a system that fails less often and doesn't fail as badly. It's about averting disasters. When a segment of the population proves it can't handle a certain level of risk, I support preventing it.
Now, I realize this seems to be different from my view on socialized retirement, but that's only because retirement is a luxury, not a right. It makes sense that a lot of people aren't good at saving for retirement, because they really shouldn't be considering doing it unless they make a lot of money or happen to invest well.
It's about controlling others and making their decisions for them.Turquoise wrote:
To a degree, yes... Natural selection does play a part in determining who lives and who dies... I'm not denying that.JohnG@lt wrote:
Let's put helmets and pads on everyone as well. Never know when someone will fall down and injure them self. Your life must suck man, you spend so much time worrying about what others do and I bet you feel helpless because you think you're smarter than most and wish you could make their decisions for them so they won't fail in life. You can't soften life for people, it makes them even dumber and more lazy. In fact, it increases the number of stupid and lazy in society.Turquoise wrote:
Some people really are massively stupid. Others are just grossly uneducated.
To prevent future disasters, it's best to set up a system where fewer people are taken advantage of.
My only concern is that when enough people fail, they can bring down the whole system (like we saw recently).
My goal is to promote a system that fails less often and doesn't fail as badly. It's about averting disasters. When a segment of the population proves it can't handle a certain level of risk, I support preventing it.
Now, I realize this seems to be different from my view on socialized retirement, but that's only because retirement is a luxury, not a right. It makes sense that a lot of people aren't good at saving for retirement, because they really shouldn't be considering doing it unless they make a lot of money or happen to invest well.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
Every society makes decisions for you. It's only a matter of degrees.JohnG@lt wrote:
It's about controlling others and making their decisions for them.Turquoise wrote:
To a degree, yes... Natural selection does play a part in determining who lives and who dies... I'm not denying that.JohnG@lt wrote:
Let's put helmets and pads on everyone as well. Never know when someone will fall down and injure them self. Your life must suck man, you spend so much time worrying about what others do and I bet you feel helpless because you think you're smarter than most and wish you could make their decisions for them so they won't fail in life. You can't soften life for people, it makes them even dumber and more lazy. In fact, it increases the number of stupid and lazy in society.
My only concern is that when enough people fail, they can bring down the whole system (like we saw recently).
My goal is to promote a system that fails less often and doesn't fail as badly. It's about averting disasters. When a segment of the population proves it can't handle a certain level of risk, I support preventing it.
Now, I realize this seems to be different from my view on socialized retirement, but that's only because retirement is a luxury, not a right. It makes sense that a lot of people aren't good at saving for retirement, because they really shouldn't be considering doing it unless they make a lot of money or happen to invest well.
So how were my decisions controlled by society today? I woke up, drove my girlfriend to work, came home, fucked around on forums for a few hours, went to class, took a nap, now I'm off to another class. Aside from the laws that I followed while driving, I didn't have a whole lot of contact with society at large.Turquoise wrote:
Every society makes decisions for you. It's only a matter of degrees.JohnG@lt wrote:
It's about controlling others and making their decisions for them.Turquoise wrote:
To a degree, yes... Natural selection does play a part in determining who lives and who dies... I'm not denying that.
My only concern is that when enough people fail, they can bring down the whole system (like we saw recently).
My goal is to promote a system that fails less often and doesn't fail as badly. It's about averting disasters. When a segment of the population proves it can't handle a certain level of risk, I support preventing it.
Now, I realize this seems to be different from my view on socialized retirement, but that's only because retirement is a luxury, not a right. It makes sense that a lot of people aren't good at saving for retirement, because they really shouldn't be considering doing it unless they make a lot of money or happen to invest well.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Frederick Bastiat
We better shut down the Stock Markets then.Turquoise wrote:
Some people really are massively stupid. Others are just grossly uneducated.cpt.fass1 wrote:
I don't understand, they say ok here is what you're borrowing and this is your monthly payment?
It's really not rocket science, and the main problem with everything is the Market tanking. That is the only reason this is a problem, if they could get away from the loan they'd be fine.
To prevent future disasters, it's best to set up a system where fewer people are taken advantage of.