It was partly that. It was also the government pressuring the banks to lend to people who had little chance of paying the bill. And it was people who took out mortgages at low rates that were variable rates, sure to go up, or with eventual balloon payments. It was also people borrowing more money than the house was worth and spending it on home improvements they couldn’t afford – or on boats, etc.
As a retired banker I heartily endorse today’s strip. I wasn’t in residential lending but I saw it happening quite clearly and I have no sympathy for the lenders who got burned making loans to unqualified borrowers and in markets they were totally unfamiliar with.
mathteacher678 6 months ago
It was partly that. It was also the government pressuring the banks to lend to people who had little chance of paying the bill. And it was people who took out mortgages at low rates that were variable rates, sure to go up, or with eventual balloon payments. It was also people borrowing more money than the house was worth and spending it on home improvements they couldn’t afford – or on boats, etc.
It was a whole lot of stupidity in many places.
lotsalaffs Premium Member 6 months ago
As a retired banker I heartily endorse today’s strip. I wasn’t in residential lending but I saw it happening quite clearly and I have no sympathy for the lenders who got burned making loans to unqualified borrowers and in markets they were totally unfamiliar with.
sandflea 6 months ago
They just write it off as a business expense.
Roscoe 6 months ago
and WE bail them out
tigerave Premium Member 6 months ago
But the bank doesn’t come to you to try to give you a loan you can’t afford. It’s still your choice!!