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It’s Possible America Learned Nothing From The Financial Crisis

Friday, July 12, 2013 - 8:09 AM
When mortgage rates shot up by a full percentage point in June, analysts at Discover (as in, the credit card company) Home Loans saw an immediate reaction from their customers. They didn’t go looking for less expensive houses. They started asking about adjustable-rate loans.  An ARM, as you may recall, allows homebuyers to borrow more money, with higher risk: It locks in an interest rate for a set amount of time, but then the rate can rise when that time expires. ARMs aren’t inherently dangerous, but the financial crisis showed America how they could be, in the hands of buyers whose eyes are bigger than their ability to make payments.

It’s possible America learned nothing from the financial crisis
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ShorebreakShorebreak2,371 posts since
Apr 6, 2010
Rep Points: 12,646
1. Friday, July 12, 2013 - 10:19 AM
With apologies to Santayana, "Those who cannot remember the past are condemned to repeat it": 

"Those who (think it will be different this time / see what they want to see / want what they want and want it right now) are condemned to repeat the past (make the same mistakes).   Apparently the lessons weren't painful enough for some individuals last time. 
6
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
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