Quote of the Day
You have the effects of the MAB [Mutant Asset Bubble] implosion wrong. The MAB has hurt poor people greatly. If you go to subprime areas, you see that it is poor, working class people who were swindled by subprime brokers and are now losing their credit scores, their houses, and in many cases down payments…
You have the effects of the MAB [Mutant Asset Bubble] implosion wrong. The MAB has hurt poor people greatly. If you go to subprime areas, you see that it is poor, working class people who were swindled by subprime brokers and are now losing their credit scores, their houses, and in many cases down payments and closing costs. This is very serious. In addition, all the empty, boarded up houses just encourage crime and destroy the property values of their neighbors’ houses. In sum, poor people were screwed on the way up and they’re being screwed on the way down. The rich are not going to suffer as much.
— by mopar in Last Week’s Biggest Sales
Wasder – that reminds me of an eggcorn I once saw, someone was complaining of being an “escape goat”.
I imagine this is the kind of thing one only finds in the possession of certain criminals in mountainous greek islands.
Sure the rich might get hurt more on a purely dollar for dollar basis but it seems Joe that they have more options available to them and therefore the dollar loss is not the same devastating situation that it is for someone with fewer means and more dependence on their property value for the retirement.
cw – just a figure of speech. I have only seen one tv source implying that some blame falls on borrowers — 60 minutes. it’s undercovered because it doesn’t get good ratings.
But I don’t know where you guys get this idea that rich people have been hurt less… I mean, where do you even start to try to justify a comment like that? don’t you have to correct for the fact that they were already rich? Of course their windows aren’t boarded up! how much does a millionaire have to lose to be hurt as badly as a person who gets forclosed on? half a million? done! his banking job? done! The pain has been spread very wide. Look how much Prince Alaweed has lost on Citigroup. Virtually his whole investment. Billions. that will leave a mark.
benson – as I noted: I’m not trying to excuse buyers of their responsibility. I’ve been watching a lot of the home-buying shows on HGTV lately, and the way some first-time or even multi-time buyers walk into things having done zero research just blows me away.
They don’t even know basic things like average area prices, let alone how to compare mortgage rates, or understand what the hell their broker is talking about when he/she starts bringing up adjustable-rates and interest-only mortgages. And this is *after* the sub-prime crash when you’d think people would be a lot more wary.
There are a LOT of people out there who seem to think buying a home is essentially the same thing as buying a toaster, only bigger. You just go pick one out that you like and think you can afford. 😛
Bxgrl and CWB;
Remember what the Romans advised more than 2000 years ago: caveat emptor!
Joe;
Most of us can recognize an intelligent Team Bear response from those of the loons. As I mentioned a few days ago, your comments have been a great addition to the scene here at Brownstoner.
PS: ahhh, Ronald Reagan. My hero!!!! Sorry, Snark, but I really wish he were around today (Bxgrl, don’t bite my head off too).
I agree with you, cwb. Too many people actually trusted the “expertise” of subprime lenders because as we all know, buying a house is a very complicated deal. These people- especially if they work the bank I’ve used for years, are going to come across as helpful, and more knowledgable than I. And how can I even know if a professional is lying or not when I don’t have that level of expertise? I mean you can and should educate yourself, but these lenders also did serious manipulation of peoples’ emotions and desire to build a solid financial future for their families. It’s marketing.
The one thing from Joe’s rant that I do agree with is that nobody wants to hear the whole truth. It is far to easy to pick a scapegoat, and there are plenty to go around. But the whole truth is more complex that this QOTD or Joe’s response.
Lord, enough with the Reagan worship. He set us on this path.