Mugged by the Moralizers

[August]

Originally Posted by GoldenRivet

Debt is not a bad thing... So long as it is responsible debt.

At $30K a year you know you can't afford that $270K house but you borrow anyway. That's irresponsible debt.

As a bank, you know theguy doesn't make much money but your willing to give him a break... So you require no downpayment and offer attractive rates. Knowing full well that the mortgage payment alone is worth over 80% of the monthly income... That's irresponsible lending.

Well I could understand if not forgive a buyer not understanding all the ramifications of what they're getting into. The sheer amount of paperwork generated by a mortgage is pretty daunting.

The bank on the other hand knew exactly what it was doing. They were granting those loans because they intended to sell the notes to someone else before the buyer inevitably defaulted. That's more than irresponsible, it's predatory imo.