Comments on: Behind The Consumer Credit Collapse

CBS Evening News: Some Risky Mortgage Tactics Mirrored By Typical Lenders

[rhs648]

When you walk in wall-mart to shop just take a look at where it is made 95% or more is made in China you can look for things made n the USA but may not find very many. And if things keep going the way they are it will not work credit or no credit.
posted by rxzyu
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How can an economy with GDP that relies on consuming be expected to survive?

Posted by perk235

It isn''t just Walmart. Upscale stores also sell goods made in China. If you go on a cruise to Alaska or Hawaii, the shops that the tourists shop at all have good made in China. This includes American flags.

[perk235]

When you walk in wall-mart to shop just take a look at where it is made 95% or more is made in China you can look for things made n the USA but may not find very many. And if things keep going the way they are it will not work credit or no credit.
posted by rxzyu
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How can an economy with GDP that relies on consuming be expected to survive?

[mikezembill]

Bush and the republicans was hoping with the $600.00 check he could make it work until he was out of office but it did not work. a lot of people says let the auto makers go under this may be ok if this country can stand to loose three million jobs.

[mikezembill]

If you buy a house and your payment is more than 25% of your net income then you may be getting over your head.

[babooph]

The banks & finance guys bribed the politicians with lobbyists to end bankruptsy for the middle class. The crooked greedy fools thought they could trap the borrower FOREVER -now they find you cannot get blood from a stone !!!Like all their crooked scams -comes to a bad end !!

[mikezembill]

When you walk in wall-mart to shop just take a look at where it is made 95% or more is made in China you can look for things made n the USA but may not find very many. And if things keep going the way they are it will not work credit or no credit. Most people not all but most people will buy more with a credit card than they would if paying cash. This is not good if you pay with cash out of pocket in the long run you will be better of as the saying the best payment plan is 100% down and 0 payments credit is good but credit cards are not the way to go.

[jodyrae4]

GREED...

[ffoulkes-2009]

The real reason for the credit crunch is people buying homes they could not afford. They used the stupid variable rate mortgages to get into homes that were way above their pay scale.

[lacroix6-2009]

So this actually means people have lended their own retirement savings from the bank, and can''t pay back...
That''s creative capitalism! Only those ones on the top of the ladder (ceo''s, bankowners etc) has got the big money, the rest has lost theirs. Congratulatiions for the ultimate capitalism lesson!

[lacroix6-2009]

So this actually means people have lended their own retirement savings from the bank, and can''t pay back...
That''s creative capitalism! Only those ones on the top of the ladder (ceo''s, bankowners etc) has got the big money, the rest has lost theirs. Congratulatiions for the ultimate capitalism lesson!

[incog-nito]

You know, I''ve always thought that the American Dream is somewhat overrated anyway.

[spinproof]

Many people will live in the moment, live in the "now" and don''t care about how to pay for it later. This is where common sense lending comes into play, if you loan someone money who can''t verify their income or who you can see from their income and shaky credit history may not be able to repay the loan then you should not lend the money. The problem is many loan agencies work on commissions so they get their commissions up front, pocket their cut and let the chips fall where they may, usually on Taxpayers backs. It''s called greed and predatory lending and these outfits should be shut down, there should also be a nation wide limit on ''interest rates'', there really is no need for any interest rate to be above 10% and that may be too high.

[McHineguy]

too many people are spending mroe than they can afford SPECIALLY those using credit..

how can you justify a person who makes $10 an hour who buys a $40,000.00 escalade??

(that is where banks are part to blame..)


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Posted by obamasNUTZ at 02:04 AM : Nov 19, 2008

I know a guy who bought a $500,000 house without knowing how much he made. He was self employed and "felt the Karma was right". In fact, his cash flow was high but so were expenses and he was "only" making $40k per year.

[McHineguy]

Not sure what that is supposed to mean since it is so over-simplistic. But if you mean stop using credit, then it is an idiotic idea. In that case virtually no one could buy a house, a car, or major appliances. In many situations, borrowing is not only needed, it is smart financially. Any analyst will tell you a business not using its credit is likely not well-run.

But borrowing requires certain assumptions about the future. When those turn out to be wrong, then loans are no repaid.


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Posted by andor3 at 12:31 AM : Nov 19, 2008

Borrowing is to civilization as fire was to the caveman. Necessary to stay warm and fend off attacks but dont let it get too big or it will destroy your posessions and could kill you. You have to be smarter than the tool you are using. Dont borrow without a workable payback plan. Dont allow others to tell you what is enough. If you don tknow then its already too much.

[andor3]

"here let walk a bit closer to your ear..STOP SPENDING MORE THAN YOU ARE MAKING"

Not sure what that is supposed to mean since it is so over-simplistic. But if you mean stop using credit, then it is an idiotic idea. In that case virtually no one could buy a house, a car, or major appliances. In many situations, borrowing is not only needed, it is smart financially. Any analyst will tell you a business not using its credit is likely not well-run.

But borrowing requires certain assumptions about the future. When those turn out to be wrong, then loans are no repaid.

[rhs648]

do you need somebody to tell you that you are spending too much??

do you need somebody to tell you that you are whiney moron who is fast on blaming everybody and anybody for your incomptence??

here let walk a bit closer to your ear..STOP SPENDING MORE THAN YOU ARE MAKING........!!!!!

***my duty to the weak and the moron is done..I warned the likes of you..*****

Posted by obamasNUTZ

Hi obamasNUTZ - Without question many people spend more than they make and lack self discipline and seek immediate gratification. However, public policy does influence consumer behavior. It appears that public policy enabled people who should have been turned down for loans to get loans they could not afford. Home ownership may be good for most people. However, there are people who purchased more house than they could afford. Did public policy make it too easy for these people to get loans?

[mikezembill]

No new parts for cars over 4 yrs old its coming.

[diverinnl]

obamasNUTZ, *** are you talking about? When did I ever state that I had any financial issues? Facts are facts. If you can''t read the posts and comprehend them, I suggest you try again when you finish the 9th grade.

[diverinnl]

brundage3,

Your response is "simplistic" at best. Did Dodd and Barney fail to take their share of responsiblity? Without a doubt. Did Bush and the Republicans scream from the top of the rafters what was about to happen? No they didn''t. Why? Easy, they were making money hand over fist on these securities. They are all to blame for this disaster, both Democrat and Republican.

[diverinnl]

rhs648,

Clinton signed the CRA into law after it was passed by I believe a Republican majority Congress. It was a bi-partisan effort to stimulate the economy. On it''s face, not a bad idea but where it failed was not having tighter regulations on the type of loans covered, it should have stipulated a down payment requirement of some sort and required a fixed interest rate, similiar to the VA loan and it didn''t force a debt to income ratio requirement to bleed out the real dead beats.