Sub-Primes, Steering, and Spitzer | 4 comments (4 topical, 0 hidden)
Not quite true (none / 0)
The Grinnings DON'T move into their Toyota.  Sure, they move out of their house when the mortgage is foreclosed, but the money they were paying for the mortgage now goes for rent on a nice apartment or house.  Of course, with that kind of rent, you can probably get a nicer house, because in a lot of markets the values of houses were appraised at more than what they actually were and above what rents in the area proved they were.

It's the bank that moves into their Toyota, and a well-deserved move it is, too.  They made a stupid loan and should bear the consequences of if.

But the Grinnings are doing just fine, even if they did have to suffer the consequences of their bad decision by being forced to move again.  But that's not really suffering, is it?

by EveningStarNM on 03/18/2008 02:34:13 AM EST

But does that really happen? (none / 0)
"It's the bank that moves into their Toyota, and a well-deserved move it is, too.  They made a stupid loan and should bear the consequences of if."

I agree with this, but I don't believe it works out that way.  In my version of the story the bank's bad decision gets passed up the food chain until it merges with other such bad decisions and eventually large corporations with "Too Big to Fail" written into their bottom lines find themselves in deep financial trouble.  Then the politicians they bought and paid for step in and bail them out with our tax dollars.

"If you're not pumped up, then get the hell out, 'cause you don't belong here." -- Cenk Uygur

by Spinny on 03/18/2008 08:21:22 AM EST

[ Parent ]
You are correct (none / 0)
Unfortunately, our corrupt campaign financing system is making our economic problems worse than what they otherwise would be.

by EveningStarNM on 03/18/2008 10:21:41 AM EST

[ Parent ]

Sub-Primes, Steering, and Spitzer | 4 comments (4 topical, 0 hidden)