Jul 29th, 2008
I am tired of listening to all this subprime mortagage news especially with regards to having the government do more to bail out “victims”. For the past 3-6 months, the news media have been making the issue that the government is not doing enough to protect middle class citizens. Presumably the government is also not doing enough with laws to prevent loan companies from having the ability to provide shady loan contracts. I am not saying the lenders are not at fault, I do however believe that the fault is not all theirs.
Subprime loans consist of various types of arrangement – 2 year fix and remaining at adjustable rates, interest only payments, etc (For more go to http://en.wikipedia.org/wiki/Subprime_lending)
With the amount of media focused on how much lenders are “scamming” victims and how little government is protecting the victims, it makes me wonder if “so call victims” have any responsibilities at all. How do one consciously signs up for a 30 year loan when they only know of the fix rate interest for the first 2 years? what about the next 28 years?… How could one who claimed they cannot read the contract, can trust themselves in speculating that the interest rate will decrease or maintain the same after the first 2 years?
Whatever happened to the idea of “Living beneath ones means”? What happen to “Earn a dollar and save a dime”. I rarely hear about savings anymore, all I hear is credit cards and credit limits. Do people not understand what the word “Credit” mean?
I have no problems placing blame on businesses (lenders, banks, etc) or the government, but equal blame needs to go to those people who signed up for these loans. The media needs to stop portraying the lenders and government as evil entities and the borrowers as the helpless victims. People need to have some self responsibilities. The media rarely mention the borrowers being at fault, probably because that will cause a stir. Can’t imagine many who want to watch much of the show if the host refers to the viewers as “dumbasses”. I know I won’t want to watch it…. it’s difficult to handle the truth… it’s easier just to blame someone/something else.
If you can’t tell that I am venting, “I AM VENTING”. I should have never watched Lou Dobbs, mind you I did not watch the whole show, I just watched enough to set me off! If it’s not the freaking fence, it is the subprime mortgage.