The sub prime mortgage crisis re-examined
You! Yes, you. I'm talking to you.
Did you get in on the low, low interest rates a couple of years ago by taking out a home loan?
Are you the one who borrowed far more than your credit or your income would allow? This is your signature I see on those contracts and mortgage forms. You did sign those the papers of your own free will and choice, didn't you?
Did you spend that money speculating in the South Florida, Washington DC, Las Vegas, and San Francisco markets, buying up all the pre-built condos, hoping to flip your way to massive profits?
Better yet, did you fritter away that money on cruises, vacations, dinners out, new cars, and generally living large? You had all that extra money... what did you spend it on?
Aren't you the guy who plowed your 400% real estate profits into more homes, townhomes, and condos, parlaying your bet to make even more money on what you'd already mortgaged?
Then...
Did you suddenly find that the market for flipped homes and condos had peaked, and that people like you had saturated the real estate market, driving prices far above that which the market could bear?
When did you notice that your bill came due -- that your ARM payments suddenly ballooned past that which you were able to pay? Did you have a "come to Jesus" moment? Or did you just figure that you'd refinance... only to find that your poor credit and overextension prevented you from getting money from Peter to pay Paul?
Now remind me why my tax dollars should bail you out?!