tag:blogger.com,1999:blog-5311425.post3348014573722289702..comments2024-03-27T00:13:35.570-07:00Comments on Editorials from Theslowlane: Is the ownership society sustainable?Theslowlane Robert Ashworthhttp://www.blogger.com/profile/10082164332880198884noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5311425.post-24592539560429810312008-09-17T00:42:00.000-07:002008-09-17T00:42:00.000-07:00Our news talks about quite a bit of deregulation i...Our news talks about quite a bit of deregulation in banking over recent years that has lead to more questionable loans. Also this has helped to fuel the frenzy of so many people wanting to own. Low interest rates fueled the frenzy also. Sort of like a fad that now needs to come back into balance, at least in my opinion.Theslowlane Robert Ashworthhttps://www.blogger.com/profile/10082164332880198884noreply@blogger.comtag:blogger.com,1999:blog-5311425.post-74608356207863993262008-09-17T00:36:00.000-07:002008-09-17T00:36:00.000-07:00Good to get your comment.Our news, in USA is full ...Good to get your comment.<BR/><BR/>Our news, in USA is full of talk about banks loaning to lots of people who wouldn't normally qualify. Sub prime introductory rates, no money down and so forth. It was kind of like a frenzy. <BR/><BR/>At the same time, prices and home values were going up faster than usual. It seems like a large chunk of people got into the market during the last, say, 5 years who were in over their heads. More people going into market who were in over their heads in last 5 years than normal. In some cases, they thought rising values would help them pay the debt when they sold again.<BR/><BR/>Eventually,a lot of those balloon payments started coming due as values started dropping leading to a significant rise in foreclosure rate. This has meant insolvency for a lot of lenders.<BR/><BR/>When home values climbed so fast,the percent of workers able to afford homes without some of that irresponsible financing dropped. Home values went up during the last few years a lot faster than wages or quite a few other things in the economy. <BR/><BR/>Now it is time for this correction.Theslowlane Robert Ashworthhttps://www.blogger.com/profile/10082164332880198884noreply@blogger.comtag:blogger.com,1999:blog-5311425.post-33580640045767087822008-09-16T11:42:00.000-07:002008-09-16T11:42:00.000-07:00Rob,what you write is right, but I think that the ...Rob,<BR/>what you write is right, but I think that the financial institutions checked every client. Problem is probably somewhere else. I can't believe that so many people became unable to pay their mortgages at the same time. Something must happened, what caused this. Some combination of different factors, world politics and whoever knows what else all together caused this crisis.<BR/>I admit, that to own a house is a prestigous thing, but there is a difference between owning and "owning" with a morgage for next 40 years on it. But, on the other side, you have to live somewhere. And many people choose rather to pay interest payments and own a house after all than pay the rent and own nothing...<BR/>So, the truth is somewhere between.<BR/>Take care,<BR/>JayAnonymousnoreply@blogger.com