There are cases where a prime borrower was able to get a better loan by going to a “subprime” lender.
They took a 3 YR prepay and got a better loan.
The subprime lender was able to offer loans to many people who would not have otherwise qualified. Even at 10% interest, people who bought in 2002-2003 had nice equity by 2005. They got lucky on their timing.
The vast majority of loans are not defaulting. Even with 20% defaults, 80% are still paying. It’s the smaller % that has caused the collapse.
The problem was the risky BORROWER, not the loan.
ANYBODY who took out a risky loan and saw their property rise in value, isn’t complaining about the loan that they took out. They aren’t offering a share of their profits back to the lender.
THAT should be the REAL bailout plan. EVERYBODY who was a subprime borrower in the last 5 years who has benefitted should contribute to a fund to help out those with bad timing. 😉
400 years from now there will be a website that will be discussing the Housing Mania at the turn of the 21st century…..
One guy will be saying ” I agree, but I don’t like that box style, it might look great in a desert setting, try that other one with a Hummer in front… Oh Gawd, it looks terrible, doesn’t it. What did they ever see in those things AND the prices that they were paying!! Wasn’t that NUTS ?”
400 years from now there will be a website that will be discussing the Housing Mania at the turn of the 21st century…..
One guy will be saying ” I agree, but I don’t like that box style, it might look great in a desert setting, try that other one with a Hummer in front… Oh Gawd, it looks terrible, doesn’t it. What did they ever see in those things AND the prices that they were paying!! Wasn’t that NUTS ?”
400 years from now there will be a website that will be discussing the Housing Mania at the turn of the 21st century…..
One guy will be saying ” I agree, but I don’t like that box style, it might look great in a desert setting, try that other one with a Hummer in front… Oh Gawd, it looks terrible, doesn’t it. What did they ever see in those things AND the prices that they were paying!! Wasn’t that NUTS ?”
