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My comment is actually citing a real world 2008 case from The Big Short By Michael Lewis (undisclosed bank writing the mortgage however). It was an interst onl
by blitzar 4y ago
My comment is actually citing a real world 2008 case from The Big Short By Michael Lewis (undisclosed bank writing the mortgage however).
It was an interst only mortgage.
History doesnt repeat itself but it often rhymes. In 2008 the teaser low rate that the fruit picker got went up, and they got wipped out, in 2023 the teaser low rate that regional banks bought government bonds at went up and they get wipped out. In a way it is poetic.
- firesteelrain 4y agoThat wasn’t the only reason. It was a cascading effect from junk mortgages and a bubble burst on the inflated housing market that people were unable to sell their homes. So they had to change laws under Obama and things started to get better about 2012-2014.
- geoduck14 4y ago> to sell their homes. So they had to change laws under Obama Obama was behind some of the legislation that led to the problem, back when he was a senator
- tekknik 4y agoWe now have a new mortgage rule requiring those with good credit to secure a mortgage for those with bad credit by charging them fees on the mortgage. Here we go again.