When Debtors Decide to Default
- Thread starter ipatent
- Start date
Yep. On the front page of my local paper a few weeks ago there was a couple bitching about a lender that told them they could afford a house when they could not. Stories about not understanding what a balloon loan is, or what the A in ARM means are common.
Some are too stupid to understand life. Most are just too damn lazy to bother to read the contract when buying something worth many years of wages, learn a little bit about mortgages or make a guess about how much of a payment they can afford.
This is the direct result of government making a "whiffle ball world" (thanks to P.J. O'Rourke for this phrase) for all of us. Government protects us from so much that we can't even spend a few seconds to read the list of ingredients on the label of a new product or think critically about anything other than who is likely to win American Idol.
My theory is that those ads, the NYT articles that encourage borrowers to chisel on their debts and the recent signs of conscience by the FASB are all part of a plot by Goldman and JPM to destabilize the regional banks so they can gobble them up on the cheap when commercial real estate crashes.
It was the plan all along.
Ya know, that sounds plausible.
So if our entire monetary system is basically a fraudulent ponzi scheme whereby it is physically impossible to repay all of the principal and interest, why are people here advocating debtors prison? Thatâs like 10 people having a race and you scream at 9 of them saying that it is unacceptable that they lost when in fact that is the only thing that can happen because only one person can actually win a race. But I guess if it makes them feel better . . . . . .
we as americans have been raised to charge, charge, charge, borrow borrow. We have to change our mind set from being a nation of debtors to a nation of savers. Dont use your credit cards anymore, dont buy a bunch of useless crap. If you don't have the cash then don't get it, wait an extra month or year or whatever. nothing is worse than not being able to sleep months on end because you owe more than you can pay. Credit is a way to make normal citizens into slaves for the big corporations. Learn to break the cycle and lets all start fresh.
If I go to the hospital because I broke my arm and the doctor says itâs going to be $1000 to fix it but I only $500, what should I tell the doctor? Well gee doc, Iâm not supposed to borrow money, I only have $500 now, so can you fix half my arm now and Iâll come back when I have the other $500.
That's not the way to look at it. The fractional reserve lending scheme works fine until one of the links breaks by one of the depositors in the chain going broke. Deadbeats and irresponsible investors are the biggest risks to the fractional reserve lending system because they are most likely to become the broken link. Therefore loaning money to likely deadbeats or to stupid, impulsive or irresponsible people is a bad idea. When my dog started getting CC offers in the mail around 2004 I knew there was going to be a problem.
Barney Frank and his pals were forcing the banks to loan to bad credit risks via the CRA at the same time they were allowing the banks to overleverage themselves. That is what caused the present state of affairs.