Wait, What If We Try Giving People Home Loans They Can’t Actually Afford To Pay Off?Submitted by Sethster82 on Wed, 01/22/2014 - 14:46
The only thing the Onion article below missed is the fact that the banks also loan out money that actually doesn't exist.
There’s no doubt about it: Times are still tough for millions of Americans out there. The country is continuing to recover from the monumental economic downturn resulting from the 2008 financial crisis, and even though there are some recent reasons for optimism, things aren’t improving nearly as quickly as they need to be. As the Chief Executive Officer of Citigroup, I’m always looking for new, innovative ways to expand our business, and the current economy has certainly made that job tougher. However, with that in mind, I’ve been thinking, what if—and please bear with me, because I’m just spitballing here—but what if we were to approve home loans for people who can in no way actually afford to pay them off?
Now, I’m talking loans that homebuyers will never, ever be able to pay off in their lifetimes—not in 10 years, not in 20 years, not in 100 years. Loans that are so big and inflated by high compound interest rates that these people will have to win the goddamn lottery if they want any hope of affording their monthly payments.
Pretty smart, right? I’m telling you...
Read more here:http://www.theonion.com/articles/wait-what-if-we-try-giving-people-home-loans-they,34930/