What would a bank have to gain in giving out loans to people who really can’t afford them?
The current economic situation,so it has been said, is largely based on foreclosures and subprime loans. It has been said these banks were “forced” to give these loans to be fair. But wouldn’t the banks resist knowing people can’t afford the loan or mortgage? I have seen banks OFFER much more money than a person needs or wants or can repay.
Tags: afford, Bank, Cant, Gain, Giving, Loans, People, really, Them, Would
The loan is sold on at a profit before repayments even start.
The bank makes the same weather you default or not, it is the pension companies which are forced to buy fixed income above the odds who loose out.
Less appearances in front of smoochy.
Aside from the sub-prime loans, you have just down right illegal loans, i am in one right now, fortunatly my home wasnt that much and I have a fixed rate , however all Im paying is interest and nothing into the principle, which is illegal in this state. Its stuff like this that kills homeowners on interest and varible rates. But you have to remember that the broker that got that deal for you made bank on the sale. He will lie to the bank about your income and make it appear like you can pay more.
The Republicans are using that argument to try to point the finger at the Dems, but the fact is that the banks were much more gung-ho about these loans than required. A lot of banks, etc, made money on these loans by qualifying people with shaky credit and then selling the loans to others.
Virtual money debt is better to banks than your real money.
They mass merger banking companies into single giant banks..then they give out tons and tons of money to create mass debt ..they know many of those people wont be able to pay them back. Predatory lending isn’t trying to get your money ..its trying to create a system of two possibilities.. first it will try to get your money, but it knows you didnt have it from the beginning, then , after surmounting massive debts by millions of people, those companies turn to the goverment and say = “we need money and we need it now to save the economy and our single bank ..becaus eif it collapses ..oh my ”
The government may them bail them out.
So think about that..they loaned money to people at the beginning that they knew couldn’t pay it back. Yet they loaned it with a rising interest rate. Guess who they REALLY loaned money too?= the US Government. They knew when they made those loans that they could rack up massive interest rate debts first ..and THEN, turn it all over to Govt. Also, if there had been millions of banks, the US Govt wouldve told them to get lost .. because their failed business practices caused their own darn collapse. BUT , thats why banks and loan companies try to merger into single GIANT companies. That way the fizzling of their company would be too great a burden and they leverage a as if terrorist blackmail against Government by saying without saying “pay us or mass disaster ensues”
Its crap, and US Govt should let them all fail – thatwould teach them a lesson. Bail out the people ..but not the ones that intentionally make GAMING schemes against the US Govt systems.