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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (81429)	5/4/2007 6:13:24 AM
From: Oblomov	Respond to of 110194

>>the lenders are sooo farked... Maybe in the short run. In the longer run, no subprime deadbeat will be able to get a mortgage loan anywhere. And there are entire subdivisions (mostly built in the last 5 years) that may as well be razed and returned to agriculture, because no one with good credit would want or need to live there.

To: Wyätt Gwyön who wrote (81429)	5/4/2007 6:38:51 AM
From: Dan3	Read Replies (1) \| Respond to of 110194

A lot of the current crop of loans basically have fine print that lets them take your first born child if the grass on your front lawn has more then 25 dandelions per square furlong. They're flat out, blatant, scams. That people sign on the dotted line just shows that most people are fools. But that notion that force of law should be used to enforce these con artist's work is silly. I make my wife save all the ludicrous credit card apps that show up each week so I can outrage over them - Giant letters say 9.x% annual rate. Tiny letters on the back of page 2 say variable default rate of prime plus 20 something %, currently 32.x%. Default rate is nowhere defined, and they can change that definition monthly, anyway. Making this type of "contract" enforceable by our police and legal system is crazy. You want to loan money out at 32%, you ought to be spending some of it on risk insurance. If you don't get paid, it's your fault for expecting someone to pay that. I don't care if the crooks that push these scams (like Citibank and Chase) ever see a dime of their money back. I certainly don't want to pay taxes for police and judges to enforce their scams. I want to see a law that says that any type of loan with a total cost (including amortized points and penalties) of more than 5% over prime is a "personal responsibility loan" unenforceable and uncollectable through the legal system. Let the grifters do their own dirty work.