Originally Posted by stmoritzer
at the end, the system is not able to solve that, it collapses
-> similar on what we see in the SubPrime crisis
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The sub-prime crisis only exists because people borrowed more money than they could afford.
Trust me, I tried that, but I made too much money to qualify for one of those "you can afford it now by only payin interest" loans... so "they" (banks and money lenders) would not let me borrow more money than I could afford... so I am now "stuck" with a low interest mortgage I
can afford to pay on the reasonably comfortable house that I could get a loan for..
Unlike
some other people, who were somehow qualified for 4 times as much mortgage so they could buy an awesomly amazing $900,000 house up the road.... and now the interest only variable rat eloan has natured to a higher interest rate and their house note is now $7500 a month, instead of the $1500 per month it was for the first 3 years...
Hmmm... this "crisis" is not a "crisis" at all... it is a reality check.
Those that should not have been loaned money are the ones in the crapper right now.. and those people who wanted to borrow more than they could afford and were approved, can't sell the $700,000 house they couldnt afford anyway, even at $400,000.
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