Re: Home Foreclosures: Crisis Is Only Getting Deeper, conservatives

On May 14, 8:02 pm, "Patriot" <liber...@[EMAIL PROTECTED]
> wrote:
> Dumb ****ing idiots shouldn't have bought a home that they couldn't
afford.
>
> Now that's common sense!

You know how you can tell that someone doesn't have the slightest idea
what's happening in this situation?

They say something as stupid as the above.

This problem doesn't begin and end with the foreclosures.

But here's a question; if someone offers you a home that you can live
in for five years for a payment that is roughly half what you pay in
rent, in a market where home prices are skyrocketing, meaning that you
could probably sell it and take the profit and buy another home, how
many people would say no? If you know you have crappy credit, but
someone tells you you qualify for a nice home in a nice neighborhood,
for a price far less than you're paying for rent, are you gonna say,
"no thanks; I'll stay where I am and rent for a few more years?

IOW, people with ****y credit were being sold homes! What do they
have to lose, really? Their credit? They go back to renting. Big deal.
it's a shame, but that's not the bad part of this.

Meanwhile, while crooks were lying about these people's finances to
get them into these homes, a whole lot of people were making money.
After all, you're suddenly putting a whole bunch of people into homes
who can't afford them... that means what? they have to build more
homes.

The problem isn't the foreclosures. The foreclosures are only the sad
veneer to the deeper problem; the legitimate homeowners who are paying
a $400,000 mortgage on a home that may only be worth $200,000 when
this thing shakes out. Yeah, millions of homeowners are upside down on
their mortgage. Millions of homeowners took out home equity loans on
equity that no longer exists. Banks can't have that much unsecured
credit outstanding, so they have to cover it with cash. That means a
lot less money available for new mortgages. That means those empty
homes can't be sold anytime soon.

Now... you understand supply and demand, right? What happens when
there is a huge glut of houses and a smaller pool of people able to
buy them?