Friday, Mar 16, 2007
The sub-prime lenders brought it upon themselves
Guardian: Suffering from dementia? Over 80? Need a mortgage? No problem
Irresponsible behaviour and marketing by sub-prime lenders has to some extent caused the panic in the sector that is resonating in global equity markets. This story looks at the case of an elderly man suffering from dementia that was sold a sub prime mortgage over the telephone, with no background or income checks being performed.
Posted by jellycaster @ 08:41 AM (160 views) Add Comment
2 Comments
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1. Royston said...
Everybody I know who has got a mortgage in the UK in the last 7 years has lied about their income. In many cases, they even got their bosses to lie about. At the very least, bosses happily convey the impression that salaries are larger that they actually are by placing a monetary value on every perk and indicating that a large bonus could be 'expected'.
Funny how the taxman always receives a very different impression!
2. lvmreader said...
The house price bubble (or any other asset bubble for that matter) is a side-effect of irrepsonsible monetarism.
Without credit /hyper-inflation, the value of a house can only really represent people's salaries. A house is basically a box that sits there, rots and needs maintenance.
Sure, we need them to live in, but do we need them 100 times more than food, medicine, engineering?
Of ocurse not.
Now why should people in China, Africa, and South America keep sending us food,raw materials and the produce of their labour just because we claim our houses are magical?