What is the subprime mortgage crisis?
December 18th 2007 22:05
You could try reading the Economist, or even looking it up on Wikipedia, but the subprime mortgage crisis is based on the idea that it's too murky for the average person to make sense of.
What we need are two funny Englishmen to give it to us with sarcasm and grace.
So: The Long Johns explain the 2007 Subprime Mortgage Crisis:
An important point that comes out of this... subprime lenders are mortgage sellers, not bankers. They, apparently, receive a fee for each mortgage they sell, which means that they are motivated to sell as many as they can. This can't possibly be good for the borrower or the source of the borrowed money.
It's a trick that reminds me of the movie, The Money Pit, with Tom Hanks and Shelley Long playing a couple that gets suckered into buying a house that they can't afford or live in. The difference is, the mortgage brokers are playing a dirtier trick, preying on low-income families and targetting the inner city, where they know that the families won't be able to pay off the mortgage.
Basically, the distress of these families is paid out, at high mortgage rates, to pay for the decadent lifestyle of rich bankers.
What we need are two funny Englishmen to give it to us with sarcasm and grace.
So: The Long Johns explain the 2007 Subprime Mortgage Crisis:
An important point that comes out of this... subprime lenders are mortgage sellers, not bankers. They, apparently, receive a fee for each mortgage they sell, which means that they are motivated to sell as many as they can. This can't possibly be good for the borrower or the source of the borrowed money.
It's a trick that reminds me of the movie, The Money Pit, with Tom Hanks and Shelley Long playing a couple that gets suckered into buying a house that they can't afford or live in. The difference is, the mortgage brokers are playing a dirtier trick, preying on low-income families and targetting the inner city, where they know that the families won't be able to pay off the mortgage.
Basically, the distress of these families is paid out, at high mortgage rates, to pay for the decadent lifestyle of rich bankers.
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Comment by Howard
Real Crash
The subprime phenomenon was only ordinary people getting sucked into what the bankers do to each other (with the contracts written by the lawyers) every day. That is why any action to "save" homeowners, without actions to save the banks, and make a firewall from the international cesspool will not only fail, but fail totally and miserably.
By the way, I can't see the movie. I dunno, they keep updating these "quicktime" movies. If you know the update I need, send me a link. Thanks.
Comment by Cibbuano
20/20 Filmsight
Science News
Hunt Famous
Orble Post of the Day
Fat Cult
Techbreak
Get it for free
Comment by Miswanderlust
Killer Beats
Ramble On
Hipnotherapy
On a more serious note... My community has been hit hard by this crisis. Never thought of it in reference to the "Money Pit". Link to Dallas Subprime crisis
Mis
Comment by Cibbuano
20/20 Filmsight
Science News
Hunt Famous
Orble Post of the Day
Fat Cult
Techbreak
I have no idea, really, since I'm on this side of the ocean. The articles are pretty alarming, though... where in America is most badly hit?
Comment by Miswanderlust
Killer Beats
Ramble On
Hipnotherapy
Mis