reply to post by cavalryscout
When I was younger I was still building my credit and I bought a car from a dealership. It was an $8,000.00 car and, because I had no credit, I agreed
to pay $270.00 every two weeks in payment.
Three years later, give or take a few months, I met a woman and we moved in together. I was the kind of guy who just whipped out checks to whatever
bill was in the stack - without caring. She was the daughter of an accountant who nit picked every single line of every single bill. She was going
through everything one night and she got confused and asked me how much I paid for my POS Chevy Cavalier.
I replied "Eight grand, why?"
She replied "Because you've already paid $22.000 for it and you've still got nearly two years left on the loan."
Long story short - I fought the bank, the bank simply showed up and took the car one night. I got a letter, a month or two later, saying that they'd
sold it, at auction, for a few thousand and that I owed them the remaining balance due ( I think it was roughly $11k more ).
Nearly $40.000 dollars for an $8.000 car. And even at $8,000 the dealership and bank were going to make their profit margin on the sale.
Bringing this all together. This is the same thing that banks did with houses to a great many people who got duped by variable rate mortgages and
loans. It was predatory lending, plain and simple. They sold those houses to people with questionable credit because they made enormous amounts of
money in the process. Money that just evaporated, off of the records through the use of exotic derivatives.
It was a scam and the tax payers ended up holding the bag.
Sure, quite a few people got caught holding onto more debt than they could afford. But many others were paying their bills - until the economy
crunched - and got caught up in the BS. Innocent victims of both extremes - the rich and the poor alike.
Right now the banks are crying poverty and playing the victim. But here's the catch. Property values will rise again, once we get past the
recession... and the banks? They're sitting on a fortune just waiting to be resold. Houses that previous tenants paid for over years.
It's a shame that good people in the middle got squeezed out.