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Old 07-02-2009
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Re: Holy Hell...470,000 job loss in June, national 9.5%

Quote:
Originally Posted by Slon View Post
And it's not so much that there was a tiny fluke and we're having problems now, it's that the problems were discovered now. Many of the people who took the loans had no way of paying them then just like they can't pay them now. It's just at the time of the loan, the assumption was that the loan could be paid back (as the contract was signed for the repayment), and that the money actually existed. Now, we find out that there is no money, but there wasn't any money back then, either. And this is grounded in piss-poor contract enforcement.
Meh. Maybe. It's more of the banks, at the behest of the govt, relaxed their underwriting standards in order to give low income families the ability to buy a new home. Many paid on time...enough didn't.
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