This entire Wall St/Bank bail out is another huge billboard to human stupidity, and it’s ugly sibling, greed. A multi billion dollar (or is it trillions yet?) example of the fact that people seem incapable of taking any responsibility for their actions and bad decisions.
News flash, since when has any bank or lending institution ever had your best interest in mind? Never is the answer. No matter what they are willing to loan you, it’s up to YOU to run the numbers and see if you can actually afford it, both short an long term. Because a person, or bank, is willing to hand you enough rope to hang yourself with, at the end of the day, you are responsible for you when you are swinging from that rope.
Banks and loaning institutions fed off human greed and stupidity like drunks left alone in a bar with no one to stop them from drinking, and their greed fed off the buyers, which made for the mother of all feeding frenzies. The banks ignored well know practices for deciding who was a good risk, and gave loans to people they should not have, but at the end of the day, the buyer has to see if their debt to income fits the loan. News Flash, people and banks are all to happy to sell you or loan you things you can’t afford.
When I want for an equity line, the bank said “are you sure that’ s all you want? We can approve you for much more.” I said no thank you, that’s all I need at this time.
People are shocked to find out the banks didn’t have their best interest in mind (now called “predatory lending”) because apparently people are too stupid to actually realize interest only has to end, interest rates do go up, bubble pop, and someone actually as to pay for that house.
A few years ago, when the buying madness was in full swing, I sold a piece of property my mother left to me. I took that money and paid off my mortgage with it.
My friends told me I was crazy. They told me I could turn that money into millions by using the money to put down payments on multiple properties (using interest only loans of course) and flipping the properties before the loans came due. That’s what they were all doing. They flat out told me I was crazy for paying off my mortgage.
The only one who actually supported my doing that was my accountant. He told me it was a conservative thing to do, and yes, I could probably get a better return on other investments, but owning my own home outright was certainly not a bad financial decision.
Meanwhile, I know all sorts of people who are upside down on their loans, have condos they purchased they can’t flip, and various other hardships that are the simple results human greed and stupidity, on both the buyer side and the banks side.
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Will Brink is a well known writer for a wide variaty of fitness/health/bodybuilding/weight loss/longevity publications who works with athletes and SWAT. He’s also a pull no punches no BS non PC kinda guy….his blog can be found here: http://www.brinkzone.com/blog
Filed under: Economy, Politics, Stupidity Tagged: | Bailout, Bank, Bubble, Conservative, Crisis, Economy, Finance, Greed, Mortgage, Wall Street
Interesting information, I love anything relating to becoming muscular and generally healthy, how I can benefit myself etc. Thanks.
DaveH-
I’m glad you like Will’s post. He does have a non-political blog over at http://www.brinkzone.com/blog if you are interested in working out and diet. And I’m glad to be the one to get his rants posted to my blog.
Freakin’ great rant here! This should be printed front page of the NY Times or Wall St Journal! Of course that will never happen as we have lost all ability to be responsible for ourselves and our bad decisions we make. Good work!
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