Quote:
Originally Posted by emellaich
During the real estate bubble, we had some of the lowest loan rates in history, yet 1/3 to 1/2 of buyers were buying on variable rate loans. Anyone could see the consequences. There was no way that those variable late loans were ever going to get cheaper.
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Because people didn't think the bubble would burst. They banked on selling their house in two years for a 40% win fall. So, why get a 4% fixed when they payments were so much lower on a 1.5% adjustable with a 5 year balloon. Or even worse an interest only or negative amortization. Everyone figured they could sell their house in 2 years and be rich. I guess they didn't realize that this is all paper wealth invented by debt rather than actualy wealth built on production and commodities with real value.
Yes, the US is in bad shape not just because of the government but because of GREED!
BOb