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Originally Posted by 69boss429
The adjustable and interest only loans are what got many people in trouble by their being greedy for more house than they could really afford.
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You got that right. And the threat of lawsuits from groups like ACORN did not help local banks. Of course, Barney Franks is the real culprit. We are only in this mess due to government interference in the free market system.
Quote:
Originally Posted by 69boss429
And while were at it standerdize credit card interest rates,most are higher than a loan shark,and the teaser low or "0" intro rates have more than 1 American in a bind now.
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No. The teaser rates of zero interest is not why some people are in a bind. The max rate is about 25%, which is a lot lower than a loan shark.
It's mainly the fact that most people are too much in debt. There is no tax incentive to save money ... just tax incentives to spend money (ie - mortgage interest deduction).
Combine that with increase in unemployment, and thats what gets people in trouble. Its not
all the fault of big business or big gov't. Some of it is just the individuals fault. Not everyone is fiscally smart.
By the way ... there is nothing stopping you from switching from one 0% credit card to another 0% credit card when the teaser rate stops. My sister does that all the time. Its just like borrowing money interest free.