Here's another example of soaking the rich. A group of people borrowed money thru home equity loans, etc and now don't want to pay it back. It seems like they expect either the government to make good on these loans, sticking it to the taxpayer again, or they expect the rich people and those who have their 401Ks invested in financial stocks to eat the losses.
Anyone who is doing this should have their loan declared exempt from bankruptcy proceedings. If you borrowed money, you get to pay it back. Nobody forced these people to take out loans. Sticking other people with your financial problems is hardly fair.
http://www.nytimes.com/2010/08/12/bu...debt.html?_r=2
Quote:
During the great housing boom, homeowners nationwide borrowed a trillion dollars from banks, using the soaring value of their houses as security. Now the money has been spent and struggling borrowers are unable or unwilling to pay it back.
The delinquency rate on home equity loans is higher than all other types of consumer loans, including auto loans, boat loans, personal loans and even bank cards like Visa and MasterCard, according to the American Bankers Association.
Lenders say they are trying to recover some of that money but their success has been limited, in part because so many borrowers threaten bankruptcy and because the value of the homes, the collateral backing the loans, has often disappeared.
The result is one of the paradoxes of the recession: the more money you borrowed, the less likely you will have to pay up.
“When houses were doubling in value, mom and pop making $80,000 a year were taking out $300,000 home equity loans for new cars and boats,” said Christopher A. Combs, a real estate lawyer here, where the problem is especially pronounced. “Their chances are pretty good of walking away and not having the bank collect.”
|