the Mortgage mess Do I have this right?

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In an effort to keep inflation at bay, the federal reserve drops interest rates to combat that, and the horrendous deficit this war is racking up. So the lower the prime rate goes the cheaper money is and the more they have to lend to people who really have no right borrowing that kind of money in the first place. As a result once their sub prime loans come due they cant afford to pay their loans and they default, killing any loaning or borrowing of any kind including student loans and the whole house of cards crumbles. The govt doesn’t have the funds to pay for anything so they borrow more to cover it?

Is that what’s happening?

Isnt this how depressions are made and whose fault is it?

  1. Reply
    May 4, 2011 at 4:02 am

    Still better than living in a dictatorship where it is in depression for the people’s whole lives. Free systems of governments are based on trust. Excesses and fulfilling dreams are always ready to occur. At least we have several ‘roaring twenties’ to enjoy and to remember in our lifetimes. Some people who overreached for a bigger and better home had at least some fun with it before they lost it. When prices finally come back down to value again, maybe some can still get back into one of these nicer, bigger homes again.
    It seems that most depressions, recessions, can be overcome with a war. Lets all hang onto our hats!!!

  2. Reply
    May 4, 2011 at 4:45 am

    mortgage mess keeps you the most proudful citizen of the most impoverished, most terrorized nation of the world.

  3. Reply
    May 4, 2011 at 4:48 am

    no its a scam to convvert us to euro.what the steps…its very near…

  4. Reply
    May 4, 2011 at 5:20 am

    The mortgage mess begins right at home where everyone bought the biggest thing they could find, whether they needed it or not, so I say , You Make Your Bed, You Sleep In It, it is no-one’s fault but their own….It was so easy for them to buy the biggest thing they could find and then they couldn’t buy the furniture for it, now does that make any sense ? ?? The whole thing is simply rediculous…JEANNIE

  5. Reply
    May 4, 2011 at 5:47 am

    It depends on the sense of spending money. Why you borrow money? You have a plan and ready to return it in till time.

    Free country is good as long as you got the capability to be free. Otherwise, government should step in further to turn the situation around.

    If you got religious sense, it may be a retribution on the delay on rescuse in N.O.

    For example, if any one failed to pay mortgage, government should take over their houss and then negotiate on the rent to those people.

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