When Debtors Decide to Default
- Thread starter ipatent
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Sandy is that the best senario you can think of, of course having insurance helps but if you manage your money right then you should have an emergency fund to deal with unexpected things in life like a $1000 bill from the hospital. My point is that you don't need to charge those $200 jeans and that happy hour and that $500 purse. Build yourself up a 2 year reserve fund that covers all your expenses in case you lose your job or something unexpected happens. Your view is that of most americans and that is why we are a nation of debtors. The greatest country in the world is full of a bunch of financial incompetents who don't understand the value of living within your means. Life has so much more to offer than buying random pieces of shit. Learn to enjoy nature and what this world has to offer. Spend more time with those that you love. The best things in life are truly free. Whether you can understand that or not is up to you. Will you be close minded or open minded. your choice.
Remember that's it's only Americans that actually call America the greatest country in the world.
Why does the older crowd always assume that anyone who complains about money must not live within his or her means? I'm under 30 and personally don't know of anyone who buys $200 jeans or racks up $500 happy hour bills. Sure, a couple of rich college kids might steal daddy's credit card and go on a shopping spree, but this isn't a true representation. Perhaps you've watched too many episodes of "The Hills".
Honestly, if you make less than $20,000 per year, as many young people do, how exactly are you supposed to build up an "emergency fund". It's a pipe dream.
Exactly. Many people in all stages of life (young and old) cannot build up a reserve due to low wages and high cost of living in many parts of the country. Sometimes, the reserve fund might had been already drained by unemployment or illness.
Often, these low wage jobs doesn't offer health insurance or other benefits.
come on guys! you can always start a reserve fund whether it be $5 a day or $50 a month. My point is that by spending like crazy you are adding to the problems of this country. Make a reasonable budget for yourself and follow it for 1 month. I bet that you would be surprised at how much money you waste. Instead of just saying it cant be done give it a shot. I guarantee it will be for your own benefit. Or just stick your head in the ground and say its not possible.
CC compaines are putting the screws to there customers. Raising the rates raising the min from 2.00% of balance due to 5.00%.
So you min due went from $200.00 per month to $500.00 per month on a 10k balance.
Rates on all customes have doubled.
So you min due went from $200.00 per month to $500.00 per month on a 10k balance.
Rates on all customes have doubled.
That's gotta hurt!
Wasn't it just a few years ago they went from 1% minimum to 2%?OK first off, think about what you just said. The fractional reserve lending âschemeâ works until one of the links is broken. Thatâs like saying the drug ring was working perfectly fine until the cop screwed it up. Well maybe thatâs because they shouldnât be doing it in the first place.
The fractional reserve system is a ponzi scheme that has to fail eventually. You just want to use the convient excuse of blaming deadbeats for ruining a system that was designed to keep the rich rich and the poor poor.
I love all these Republican theoryâs that are never backed up by real scenarios or facts.
Yea poor people getting mortgages certainly caused all this mess. Whatever Rush says youâll believe. Oh what? 80% of sub prime loans were given by financial institutions that had little or no regulation by the Community Reinvestment Act? Well that canât be. That could mean only one thing - the free market failed. Banks gave out loans they shouldnât have, not because the government forced them to, but because they got greedy. Plain and simple. It was a typical free market bubble with gas poured on the fire by the Fed.
http://en.wikipedia.org/wiki/Community_Reinvestment_Act#Relation_to_2008_financial_crisis
Some legal and financial experts note that CRA regulated loans tend to be safe and profitable, and that subprime excesses came mainly from institutions not regulated by the CRA. In the February 2008 House hearing, law professor Michael S. Barr, a Treasury Department official under President Clinton,[64][108] stated that a Federal Reserve survey showed that affected institutions considered CRA loans profitable and not overly risky. He noted that approximately 50% of the subprime loans were made by independent mortgage companies that were not regulated by the CRA, and another 25% to 30% came from only partially CRA regulated bank subsidiaries and affiliates. Barr noted that institutions fully regulated by CRA made "perhaps one in four" sub-prime loans, and that "the worst and most widespread abuses occurred in the institutions with the least federal oversight".[109] According to Janet L. Yellen, President of the Federal Reserve Bank of San Francisco, independent mortgage companies made risky "high-priced loans" at more than twice the rate of the banks and thrifts; most CRA loans were responsibly made, and were not the higher-priced loans that have contributed to the current crisis.[110] A 2008 study by Traiger & Hinckley LLP, a law firm that counsels financial institutions on CRA compliance, found that CRA regulated institutions were less likely to make subprime loans, and when they did the interest rates were lower. CRA banks were also half as likely to resell the loans.[111] Emre Ergungor of the Federal Reserve Bank of Cleveland found that there was no statistical difference in foreclosure rates between regulated and less-regulated banks, although a local bank presence resulted in fewer foreclosures.[112]
Bring back debtors prison ........ for bankers.
If a bank becomes insolvent, then the executives should serve prison time until any public assistance given (TARP etc.) is repaid.
If a bank goes completely belly up and FDIC insurance is used, then prison time is appropriate for the bank executives, risk managers and loan officers.
I think this will be the only way to keep these scoundrels honest.
If a bank becomes insolvent, then the executives should serve prison time until any public assistance given (TARP etc.) is repaid.
If a bank goes completely belly up and FDIC insurance is used, then prison time is appropriate for the bank executives, risk managers and loan officers.
I think this will be the only way to keep these scoundrels honest.