I have to agree with the above the posters. I think many of the sub prime borrowers were greedy and stupid, being played by media hype, predatory lending and all the other greedy players in this game.
Everyone cannot have everything they want. The subprime borrowers did not exercise much common sense….sheesh, did they think a windfall or inheritance was coming in 3 years when their ARM reset? They had to have known that their salary was not going to increase 10 fold.
A friend bought in 2001. Because he and his partner have excessive spending habits, they have re-financed 2-3X to pull money out to pay CC bills. He is sweating it because their latest ARM resets in March 08. He is now pulling out of his retirement, to pay off the CC. I do not feel sorry for him, but I do not cheer his potential downfall. I have watched him buy a $5000 bed. Next, a $3000 vacation. Next, a $5000 TV. Next, an Acura with a $650 monthly payment. Next, a new laptop, $1000. Another new computer, $2000. Top of the line cable and all stations. The house has 2 landlines and they each have cell phones. All this on a $65K salary. Yet, he calls me tacky and cheap because I drive a 95 car that is paid off, looks nice (bondo’ed and repainted just in Jan) and live in a house I can afford.
Now, I have had my problems….my CC was getting up there at one time. So, I worked 2 jobs to pay it off, and I did. Now, I live within my means. I would like to own a old Craftsman house near Morley Field, but I cannot afford it. It’s simple: Do NOT buy what you cannot afford.
Its the mentality of the buyer that is the problem. Looking to be the rich and famous, when you aren’t the rich and famous. It is called taking responsibility. The problem with this society is everyone blames everyone else for their problems.
