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Housing Bubble Bloodbath

By Mike Whitney

Imagine mortgage payments that suddenly jump from $1,300 per month to more than $2,000 on a $129,000 house. That’s what many people will be facing in 2007 when their loans reset and they are suddenly forced out of their homes and onto the streets.
http://www.informationclearinghouse.info/article16164.htm
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Yes, I agree that it is a bad thing. However, everyone who estabishes a mortgage knows what they are getting themselves into. There is a ton of expert advice available that explicitly tells us not to get an ARM. The problem is people do not want to wait until they can afford a house to buy one. It seems that the norm now is to live pay check to pay check and throw caution to the wind.

We need to be more responsible like our parents and grandparent were. They did not go out and buy three cars, house, swimming pool, country club membership, etc.... if they could not afford it. They saved money, and they understood how hard it was to save this money, so they spent it wisely.

It really ticks me off when I see people going into pawn shops to make payments on their Sony Playstation when they don't have money to pay their rent.

This "I've got to have it right now" mentality has to change or this country is going into the dumper.
quote:
Originally posted by Quarrles:
Let's talk about education. Alabama ranks 48-49 in the nation. Functional illiterates? Don't blame the financial system for individual ignorance. The best consumer is an educated one.
Do you refer to the "9th grade as my senior year?" Who's to blame? Try the mirror.



You said it, and good point!
quote:
Originally posted by scott2008:
Yes, I agree that it is a bad thing. However, everyone who estabishes a mortgage knows what they are getting themselves into. There is a ton of expert advice available that explicitly tells us not to get an ARM. The problem is people do not want to wait until they can afford a house to buy one. It seems that the norm now is to live pay check to pay check and throw caution to the wind.

We need to be more responsible like our parents and grandparent were. They did not go out and buy three cars, house, swimming pool, country club membership, etc.... if they could not afford it. They saved money, and they understood how hard it was to save this money, so they spent it wisely.

It really ticks me off when I see people going into pawn shops to make payments on their Sony Playstation when they don't have money to pay their rent.

This "I've got to have it right now" mentality has to change or this country is going into the dumper.


You said it! I am amazed at the people I see who live paycheck to paycheck. And I am talking about people who make lots of money. New cars, new bathrooms, new furniture.

It is really sad. but it is a credit card generation and some people even consider debt to be good. they call it leveraging.

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