I think the banks are stupid for getting into this mess and not seeing what a mess it was until it was too late. There is so much they could have done to prevent it before things went too far.
I also have to step back and wonder what on earth consumers were thinking though? Multi-rate, balloon payment loans??? Come on! It amazes me that no one thought ahead to 5 years down the road when the housing market would be flooded with people trying to sell their homes to avoid the changing rates/balloon payment, after having driven the market sky high so no normal person can afford a normal loan. My husband and I saw those loans and made evil hex signs at them. A balloon payment in 5 years?!? Ya right!
Yet again though, the banks should have controlled the number of these types of loans they approved. It would have helped keep the housing market under control.
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Date: 2008-09-25 05:27 am (UTC)I also have to step back and wonder what on earth consumers were thinking though? Multi-rate, balloon payment loans??? Come on! It amazes me that no one thought ahead to 5 years down the road when the housing market would be flooded with people trying to sell their homes to avoid the changing rates/balloon payment, after having driven the market sky high so no normal person can afford a normal loan. My husband and I saw those loans and made evil hex signs at them. A balloon payment in 5 years?!? Ya right!
Yet again though, the banks should have controlled the number of these types of loans they approved. It would have helped keep the housing market under control.