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 26 days 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 26 days 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 26 days ago
They just write it off as a business expense.
Roscoe 26 days ago
and WE bail them out
tigerave Premium Member 26 days 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!!