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September 13, 2007



A bunch of Banks agreed to (indeed, encouraged) inappropriate home loans. These loans were set up to have teeny payments at the beginning which would increase over time. The lame logic was that the buyer would have sold up and aquired a new mortgage before the loan become untenable. Then the economy turned down just slightly. Just enough so that houses didn't sell as swiftly. Mortgages became steeper and house-hopping more difficult. Many people who should never have been entrusted with a mortgage in the first place have begun to default. What kills me is all the plans to save these idiots from foreclosure. I mean, what, should I make a series of poor decisions and then expect the government to buy me a house? I bought a house which is the brick and mortar equivalent of a 'smart car' because it was what I could comfortably afford, and the government helps me not at all. A neighbor overspends on a freaking macmansion, and he gets *help* (poor baby)because he might lose his home. A home that he really couldn't afford in the first place, and ANYBODY could have seen it coming. I certainly did. Ahem. Rant concluded.

The good news is that likely going forward, people like me with stellar credit ratings will have an advantage in most lending situations. Indeed, we may be able to secure loans when others simply cannot, which is the way it should have been from the start. The economy would have grown more slowly, but would have been built on a more solid foundation.

Calculating a credit rating, by the way, is a math exercise not a social issue. You don't have to be rich to be responsible.

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