Upside Down Mortgage

Subprime Mortgage Crisis Explanation

Question: Looking for a clear and simple explanation of the Subprime Mortgage Crisis?

Here's a great write-up.

http://genxfiles.com/2008/09/21/the-mess-that-were-in/

I would love to hear your thoughts and opinions....

Answer: greed pure and simple - the average person knows inside themselves what level of debt they can comfortably afford and yet when teased into higher levels the attraction is too hard to say no to. This is not a reflection on the borrower but is on the lenders. People will take if banks are willing to give its just human nature. Most people really can't even afford credit cards let alone a big home loan.
If only people had stuck to that old time method of three times annual income as price of home they could afford on their budget none of this would have happened.

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