|
Credit crisis in short:
People want things now, but can not afford it now. Credit Card payments get behind schedule. Credit cards have rediculous %, people can't repay.
People want BIG house they can't afford, take risky variable rate mortgage to get BIG house now. Justify purchase because they think it's an investment that will pay off. Investment does increase in value, mortgage increases, people can't pay.
Mortgage company want BIG business now. People can't afford to pay mortgage, company invent variable rate mortgage to get people in BIG houses. People can't pay, company sucks the big one.
If you're confused, buy Dave Ramsey's book to help you in the future (or listen to him on the radio like me).
__________________
"Smite the rocks with the rod of knowledge, and fountains of unstinted wealth will gush forth." - Ashbel Smith as he laid the first cornerstone of the University of Texas
|