Originally posted by Astyanax
Then everybody is happy -- the borrower ends up richer, the lender gets his money back with interest, the economy prospers and hard work is rewarded.
You say all this should be tossed away, and the world financial system destroyed into the bargain, just to protect greedy, feckless, unproductive
layabouts from themselves?
I don't think so.
Well, in case no one has noticed by now the lenders are not getting their money back with interest, the economy is not prospering and hard work is not
getting rewarded, it's getting laid off.
Not saying all financing should stop, but the unregulated predatory lending that went on the last few years has hurt a lot more people than "greedy,
feckless, unproductive layabouts". We are all paying for it now.
It may be moot at this point because credit is drying up fast. I personally blame a lot of this on the lenders and our educational system. Basic math
skills by the end of high school should include how to budget, how to balance a checkbook, what the long term growth of savings boils down to and what
the long term cost of a loan boils down to. No one has a clue anymore.
Typical everyday answers to people calling about rentals when asked the following qualifying question include (about 50% of incoming calls"):
What is your weekly gross household income?
"I don't know I get paid every other week".
"I only know what I take home."
"What do you mean I can't afford the rental? I take home $200 more than that a month." (Maam/sir - that will pay your utilites on the house, what
are you going to do about food?) "ummmmmm"
People have been so dumbed down it's frightening! I'm sorry but too many people were mislead to believe they could afford a home without
understanding that they couldn't really, except for the teaser rate they were starting out with, and lenders made the loans anyway. Sure some of
these loans were to greedy people, but way too many of them were to your average Joe who just wasn't taught anything worthwhile in school and do not
have the skills needed to understand what was going to happen to them two years down the road.
Like I said though, it's all going to be moot. What should be the current generation of first time home buyers are never going to be able to afford
one because the loans that are going to have to be written now that we are in crisis mode, will require downpayments they will never be able to come
up with, (partially because they have been taught, bought and encouraged into debt the minute they graduate from high school) higher fees, higher
rates, etc. and from what I am seeing, they are racking up debt just to eat and get to work now in the current economy.
I recently had a discussion with a high school student who was taking a mandatory class (for her particular curriculum) called "Critical Thinking".
The current assignment had something to do with a what if scenario about a balloon being let go with some stupid caveats attached. This is not
critical thinking, this is imagination exercises. I really believe the US educational system has just gone down the toilet. Was she ever taught to
balance a checkbook, does she understand saving money, borrowing money and the consequences? Yes, but not at school. She is one of the lucky few who
have two generations of family all involved in her upbringing. I hate to say it but I really think a good part of our Global Meltdown is a product of
the dumbing down of our children, who haven't got a clue how they are being taken advantage of financially at this point (every dime they make is
spoken for within a few years of high school graduation, starting with - heaven forbid - they had to finance a higher education) and now it's all