[Pops]

Hey Hawk,

"work hard and play by the rules" is engraved on the capitalist obelisk, on the proletarian side...

[GHung]

I'm not so sure that banks, et al, have tightened their lending requirements as much as TPTB want us to believe. I know of at least two cases locally where people who had no business qualifying for loans got them. One couple I know got a home loan and the broker(?) asked for past income (which wasn't very high) but apparently didn't care about current income. Or maybe the couple lied. He was/is unemployed. The company he told them he works for went out of business over a year ago, she had been fired from her medical job, and they had defaulted on a big auto loan. Neither have been very responsible over time. All easily verified. Now he 'can't work for medical reasons' and is trying to get disability. She's working part time for around minimum wage.

They borrowed 2% down from a parent and got the loan on more house than they needed. It's clear that whomever was responsible for qualifying their loan didn't do due diligence, or didn't care. That's a system I want no part of.

[Hawkcreek]

$this->bbcode_second_pass_quote('Pops', 'H')ey Hawk,
"work hard and play by the rules" is engraved on the capitalist obelisk, on the proletarian side...

[Pops]

The irresponsible deadbeats actually were small potatoes compared to the prime borrowers when it came to foreclosures. I know that goes against the whole tea party reason for being but the fact is no one, especially the people making money off the sale, told any of these people that RE doesn't rise forever, and that included the "responsible" folks with good credit scores. Not surprisingly, the buyers that failed had low equity, across the board regardless of whether they were upstanding paragons of moral virtue or something more human.



Lots of info her if you have lots of time

[GHung]

$this->bbcode_second_pass_quote('Pops', 'T')he irresponsible deadbeats actually were small potatoes compared to the prime borrowers when it came to foreclosures. I know that goes against the whole tea party reason for being but the fact is no one, especially the people making money off the sale, told any of these people that RE doesn't rise forever, and that included the "responsible" folks with good credit scores. Not surprisingly, the buyers that failed had low equity, across the board regardless of whether they were upstanding paragons of moral virtue or something more human.



Lots of info her if you have lots of time

[Pops]

easy!

That came from this, where I found the study. I've heard over and over about those irresponsible losers who caused the crash and wrecked all our lives. It was really a big part of the media narrative at the time and I hear it from all sides.

PS and I can't help taking a whack at the TEAs whenever possible

[GHung]

$this->bbcode_second_pass_quote('Pops', '.')....

PS and I can't help taking a whack at the TEAs whenever possible

[Pops]

What I read P was that those most likely to default were those with the least equity to start and the most underwater at the end. Hard to keep your enthusiasm up when you are sucking canal water, no matter how upstanding you are. Considering they were selling neg amortization loans it's no surprise, just like in the '80s the spiel was RE never goes down. Back when America was great you needed credit, proof you could keep up and skin in the game (a down payment) to keep you interested. The obvious solution is to eliminate the mortgage resale market, if you are keeping the paper you make sure it's good.

I realize that isn't your point. I've said from the start that San Fran commuters to the San Joaquin valley got hurt bad by gas prices which is why Stockton CA was one of the areas worst hit.

[Pops]

$this->bbcode_second_pass_quote('GHung', 'Y')eah, well have a little compassion.

[SeaGypsy]

I'm working in construction in the fastest growing city supposedly in the world, Melbourne, Australia. Every day I'm delivering scaffolding to construction sites around the burbs. 3/4 are in new development sites, 1+ hour commutes to the CBD. McMansions mostly- built right up to the fence line. Most of the work is for the biggest housing construction companies in the country. Supposedly we've had a Royal Commission response from our 'Big 4' banks- tightening lending conditions; but i see signs every day advertising "BUY a NEW HOME FOR WHAT YOU PAY NOW IN RENT- FROM ONLY $2K DEPOSIT! ENQUIRE NOW!!!" These houses average well over half a million AUD, where real median wages are around $50k. Many of the buyers are new migrants, no memory of long term interest rates.

As i mentioned in my thread last year about mortgage slavery- there's no other gig left in town, nothing else to invest in. The modern economy is a one trick pony & it's thoroughly doomed.

[Cog]

Lot of socialists up in here. This time they will do it right. Just ask them.

[Cog]

$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('GHung', 'Y')eah, well have a little compassion.

[SeaGypsy]

The USA is partly socialist, as is the rest of the safety netted developed world. China is one party capitalist. There's no non growth based economic system, & there's no spare planet'.

[Cog]

$this->bbcode_second_pass_quote('SeaGypsy', 'T')he USA is partly socialist, as is the rest of the safety netted developed world. China is one party capitalist. There's no non growth based economic system, & there's no spare planet'.

[SeaGypsy]

Righto so no more safety net payments? No unemployment, single parents, disabilty, etc? Doubt it.

[Newfie]

Cog,

Knock off the trolling.

[SeaGypsy]

& btw Cog, i might get there- I'm working my way up to what you call OTR truck driving. I've been driving bigger trucks than exist in the US system for 6 months so far, next month i get my multiple combination license- the highest level truck license in existence anywhere- it's for road trains, legal here up to 4 trailers, 55 meters long- 180 feet, 54 wheels. Currently driving single semi urban maxis- 65 feet, 22 wheel, 55,000 kg. I can wear rainbow beanies & pink shades if i like, nobody says sh#t. Aussie truck drivers can pick up jobs at the top of the wage bracket there very easily. So we might get to have that beer after all.

[Pops]

Hey Gypsy, I know what you're saying, the average house in California sells for $550k — that's average for the whole state. Even up the coast in Washington state the average is almost $400k and is up 10% YOY. Getting crazy.

The US has social programs, begrudgingly, not to be confused with being "socialist" which is government ownership of production — or communism, which is government ownership of everything, including your home.

When I consider that a younger generation may not be able to see themselves ever owning a home at these prices and wages, or being all that impressed with the democratic process that doesn't enable them to have some kind of ownership, it makes me wonder about the viability of the system.

[Cog]

$this->bbcode_second_pass_quote('Newfie', 'C')og,

Knock off the trolling.