Loading ...I was at the bank about 4:00. Talking to one of the financial advisors, and I mentioned I think Real estate in N.Y. is ready for another drop. She agreed and then she tells me, she was selling real estate just before the “bank” job. She said they are doing the exact same thing they were doing before the financial crisis. Loans with 3% to 5% down payment. She could not believe the risky loans she saw get approved.
In N.Y. in my zip code, for every one house for sale, there are two more in pre-foreclosure. The so called owner stops paying, and stays in the house free, for 4-5 years before the bank finally takes ownership. The banks pay the property taxes too. Sometimes the actually PAY the occupant a lot of money to move out.
Many stories I can talk about. A person I know buys a very expensive house on the highs in Ca. Soon after comes the crash. So he stops paying, and buys a cheaper house, probably in his girl friend’s name this time, in a better neighborhood. Then proceeds to rent out the empty house to a friend of his. He squeezed many years of free rent money on a house he did not own.
Another story, family stops paying for about 4 years, and saves up all the payments for himself, builds up a nice kitty, and moves to Florida and buys a house for cash. Another guy I know lost a lot of money in the dot com bust, got a $300k margin call.
He borrowed against his house and was swinging payments and credit cards until the ’08 crisis. All his credit limits were lowered or cut off and after a while he gave up, and stopped paying FIVE years ago. He recently got a letter from the bank, advising an auction coming on the house in July.
Then you have the IMF International monetary fund. Think about how many so called loans were not paid back. Mexico and Poland come to mind but there are many non performing loans out there.
The banks also tax people like socialist gov’ts do with the inflation as the invisible tax. They also redistribute wealth globally with engineered currency exchange rates that move USA manufacturing wealth to other nations they consider poorer than the USA.
None of the employees care one bit if these loans are not paid. They all get their pay checks any way. Besides that, the “money” they loaned out was fake, just paper, so what’s the harm? They didn’t lend out GOLD to buy the house.
There is a harm though. It sets a bad example with others, and increasing amounts of copy cat people are doing it even though they can afford the payments. Anybody can borrow, get into the house, and not even make the first payment. A realtor told me that.
There are no real banks with real money in them, like the old days of Jessie James, and Wild Bill Hickok. When you robbed a bank in those days there was REAL pain.
The SS Central America, known as the Ship of Gold sank with 30,000 pounds (14,000 kg) of gold. The loss shook public confidence in the economy, and contributed to the Panic of 1857.
If a ship today sunk with $20 trillion dollars in US $100 bills it would not mean a thing.