60 Minutes Segment on US Housing Crisis

[joeiannuzzi]

I thought this was a good explanation as to how the sub prime crisis began and is now unfolding across the United States. The bus tour portion made me think of the annual Alberta and Ontario field trips although this is strictly coincidental.

http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3756665n

 

[EdRenkema]

QUOTE (joeiannuzzi @ Jan 29 2008, 07:14 PM) I thought this was a good explanation as to how the sub prime crisis began and is now unfolding across the United States. The bus tour portion made me think of the annual Alberta and Ontario field trips although this is strictly coincidental.

http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3756665n


Thanks for the link Joe.
Did you see the young couple Steve interviewed explaining the irrationality of paying on a mortgage for a house that is worth much less than the value of the loan, they figured their only way out was to walk away. In 1990 that was me. I borrowed a $30 K down for a 140K prebuilt townhome, a 6 month closing and timed the market exactly for the crash. Only difference was I didn`t walk, everybody got paid-every bill- on time, ask me how I did that with no job, no UIC, no income period and with a $500 per month negative cash flow?? No one answer, I scrounged work, lived in my father`s basement for free, liquidated RSPs did everything I could to reduce my expenses, but mostly I never gave up. I sold it in 1998 for 100K even.
Why these people are being counselled to walk away is beyond me. Say all you want about the greed of the sales and mortgage people - at some point individuals must understand they are responsible for their own actions. At the time I didn`t know much but I certainly knew that much.

Ed R

 

[joeiannuzzi]

QUOTE (EdRenkema @ Jan 30 2008, 03:34 PM) Thanks for the link Joe.
Did you see the young couple Steve interviewed explaining the irrationality of paying on a mortgage for a house that is worth much less than the value of the loan, they figured their only way out was to walk away. In 1990 that was me. I borrowed a $30 K down for a 140K prebuilt townhome, a 6 month closing and timed the market exactly for the crash. Only difference was I didn`t walk, everybody got paid-every bill- on time, ask me how I did that with no job, no UIC, no income period and with a $500 per month negative cash flow?? No one answer, I scrounged work, lived in my father`s basement for free, liquidated RSPs did everything I could to reduce my expenses, but mostly I never gave up. I sold it in 1998 for 100K even.
Why these people are being counselled to walk away is beyond me. Say all you want about the greed of the sales and mortgage people - at some point individuals must understand they are responsible for their own actions. At the time I didn`t know much but I certainly knew that much.

Ed R

Hi Ed. Although it may not sound like it to you, this sounds like a success story!! Despite overwhelming odds, the cards being very much against you and little hope for an eventual success, you pulled it off and no one can take that away!

As for the reason why those people on the 60 minutes segment were misinformed about their finances, I believe it has to do with financial illiteracy which is rampant across Canada and around the world.

In my opinion, if people had purchased the Quickstart course and then went out into any marketplace to purchase properties, I believe their chance of making a serious mistake would be greatly reduced.

Congratulations on following through and being accountable to yourself!

 

[EdRenkema]

Thanks for the compliment Joe, it really wasn`t a success because once my debts were paid I didn`t do anything else, unless you count travelling and learning new languages, living with `no fixed address` for years at a time.

I was accountable yes, but I ran scared for a long time. I will say this a little healthy fear does great wonders for lngevity

 

[GarthChapman]

QUOTE (EdRenkema @ Jan 30 2008, 03:34 PM) Thanks for the link Joe.
Did you see the young couple Steve interviewed explaining the irrationality of paying on a mortgage for a house that is worth much less than the value of the loan, they figured their only way out was to walk away. In 1990 that was me. I borrowed a $30 K down for a 140K prebuilt townhome, a 6 month closing and timed the market exactly for the crash. Only difference was I didn`t walk, everybody got paid-every bill- on time, ask me how I did that with no job, no UIC, no income period and with a $500 per month negative cash flow?? No one answer, I scrounged work, lived in my father`s basement for free, liquidated RSPs did everything I could to reduce my expenses, but mostly I never gave up. I sold it in 1998 for 100K even.
Why these people are being counselled to walk away is beyond me. Say all you want about the greed of the sales and mortgage people - at some point individuals must understand they are responsible for their own actions. At the time I didn`t know much but I certainly knew that much.

Ed R


The best compliment one can receive is the one I offer you now Ed. You are a man of integrity. You lived by your values when it hurt. Not many would.