oldfogey

Bloomberg.com: Finance

Continuing evidence that the less prudent personal mortgage borrowers are having a hard time and are increasingly defaulting on their loans. The big boys are then having trouble paying their debts to the bigger boys.....

All those stories about completely hedged lending programmes turn out not to have been true!

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Blessed are the young for they shall inherit the national debt - Herbert Hoover

gt702

In the US, the mortgage industry (and we have an agressive "mortgage expert" in our local area) has been putting people into mortgages well over their heads for some time, with the assumption that house prices will continue to go up and jobs are secure. Both of those assumptions aren't working out in many areas. All the "experts" know is how to turn mortgages and keep people in dept. It is time to pay the devil for many people.

To me, it is another example of mistakenly trying to apply the tricks of the tycoons to the common people. Rich people can afford to take these risks with a portion of their money, us little people cannot really afford it, but like to try and there is always someone willing to make money on our attempts.

The stock market and day trading is another area where the common people have taken unnecessary risks and in many cases fell short. The dot-com rise and fall is a big example of the down side of that.

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Reality is merely an illusion, albeit a very persistent one.
Albert Einstein