Today’s Kansas City Star has an article in the Business Section titled Subprime loans for mortgages have a defender. Here are a few tidbits from the article followed by my own editorial comments;
“Let’s not overreact. Let’s not do away with subprime lending, because that has helped a lot of people who up until now have not been able to purchase a home,” said Nancy Pierce, president of Tipton Research Group in Kansas City. – Ah, no kidding. I’ve helped several home buyers and investors who have properly used subprime loans and not one has gone in to default.
“People were buying more house than they could afford.” – Again, I’ve said it before. Much of this is the fault of the lenders. But make no mistake, there were buyers who knew better.
“It’s not the subprime loan by itself that’s the culprit here,” Pierce said. “There’s been a lot of greed that has gone on in a lot of different areas that has contributed to the subprime problem.” – Isn’t this what I’ve been saying? First they give loans to people who shouldn’t have them. You know, $65,000 annual income with zero down and a mortgage of $325,000. Whatever happened to 28% – 35% of your income for debt?
And don’t forget, it’s Nude Recreation Week.