I would argue that "the rascals" include not only greedy lenders, but also greedy borrowers. These folks just couldn't stand to live in a modest home, so they bought more than they could afford in an effort to keep up with the Joneses.
Shame on me, but I feel a little good that it has come back to bite them in the butt. My wife and I bought a modest home. When we were in the market, we calculated our payment ability based on just one of our incomes--not both. This was so we could afford to make the payments if one of us ended up out of work. We also stayed far away from ARMs and interest-only loans. All the while, I watched people in our age and income brackets building nice, big new houses. And yes, I'll admit to a bit of envy. Now, though, I'm mostly just relaxing. The economy sucks, but I can still make my mortgage payment every month. And if my wife or I lose our job, I'll *still* be able to make the payment every month. -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] Sent: Friday, September 26, 2008 11:07 AM To: NT System Admin Issues Subject: Re: $700B? Track down as many "loan officers" as possible and play grab ass-et with them! (Hundred million $ bonuses/salaries for screwing up???) Then disappear 'em to Gitmo... <rant>Here's the thing. Let's suppose I'm super wealthy. (If I were, I'd not be a sysadmin!) I pay cash for a new house and car. I still have a substantial sum in mutual funds, money market accounts, and CDs... Now, some hucksters come up with "creative financing" and convince $30k/yr folks they can take out a $350k loan. It will be at, say, 1% interest, and their payment (wild guess here) is $350/month. They're told it's an ARM, and the rate will go up a point. Not to worry - houses are going up in value; they can re-finance against the increased value. Well, the buyer thinks, "a 1% increase in my $350 payment is only $3.50". WRONG! The "1% increase" means that 1% interest now becomes 2% - his payment doubles! Meanwhile, other hucksters keep paving over the world's greatest farmland for more McMansions. Other hucksters buy up all these sub-prime 1% loans, package them, and put them on the world market. They're sold to dang near every major financial institution in the world because what actually happened was never considered... SO, with all those McMansions, the population ran out of people who would buy them, so they sit empty. Someone does want to buy a house, and these new empty structures have had their prices slashed - supply far excedes demand. Meanwhile, this drags down the value of any and all houses. Those sub-primers find that, at the time their $350 payment becomes $700, their $350,000 McMansion is now worth only, say, $175,000 (but they owe $350,000). They walk away (literally), so the house is now vacant. Folks default on mortgages, so there is no more money to be lent (for not only mortgages but for business loans as well.) Meanwhile, the house for which I paid cash has also gone way down in value. If my neigbors are all moving out, leaving their houses vacant, then squatters or salvagers descend upon the neighborhood. My house is now worth even less, and I am now in a high crime area. Meanwhile, those bundles of mortgages everyone bought? Well, they're pretty close to worthless now. Consequently, my mutual funds begin losing thousands per month. Banks are no longer lending, so the interest rates on my CDs and money markets approach nil. So, as I approach "retirement age", my assets (the house I thought I could sell to move into a tiny place as well as my investments) are no longer there. I obviously don't retire, but if the cash-flow situation results in my company folding (and me out of work), ...? Note that although the USA is most deeply affected, the fact that these bad mortgage packages were sold world-wide affects the economies in the rest of the world as well. So, although it might seem satisfying to "let the rascals rot", the situation is going to take down everybody unless some action (preferably the correct action!) is taken.</rant> -------------------------------------- Richard McClary, Systems Administrator ASPCA Knowledge Management 1717 S Philo Rd, Ste 36, Urbana, IL 61802 217-337-9761 http://www.aspca.org "Devin Meade" <[EMAIL PROTECTED]> wrote on 09/26/2008 09:28:41 AM: > 700 Billion / 300 Million = $2,333. Thats what every resident > (legal and non-legal) will be paying to bail out the crooks. How > bout sending US a check instead. Shutting up now. > On Fri, Sep 26, 2008 at 9:19 AM, Eldridge, Dave <[EMAIL PROTECTED]> wrote: > I like the idea going around to reverse the "trickle down" and start > at the bottom and let 700b flow upwards. J > > From: Vue, Za [mailto:[EMAIL PROTECTED] > Sent: Friday, September 26, 2008 7:33 AM > To: NT System Admin Issues > Subject: $700B? > > This sounds more like a ransom from the master of evil for wanting > to take over Earth or a Lewis Farrakhan lawsuit. > > -Z.V. > > > > > This e-mail message (including any attachments) is for the sole use of > the intended recipient(s) and may contain confidential and privileged > information. If the reader of this message is not the intended > recipient, you are hereby notified that any dissemination, distribution > or copying of this message (including any attachments) is strictly > prohibited. > > If you have received this message in error, please contact > the sender by reply e-mail message and destroy all copies of the > original message (including attachments). > > > This e-mail contains the thoughts and opinions of the sender and > does not represent official Parkview Medical Center policy. > This communication is intended only for the recipient(s) named > above, may be confidential and/or legally privileged: and, must be > treated as such in accordance with state and federal laws. If you > are not the intended recipient, you are hereby notified that any use > of this communication, or any of its contents, is prohibited. If you > have received this communication in error, please return to sender > and delete the message from your computer system. > > > > > > > -- > Devin > > ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~
