OCCUPY WALL STREET

[theoddz]

Originally Posted by JustJo

This is absolutely true for a lot of people. I also wonder though about where we draw the line on believing the banks and credit card companies.

Every time I've gone to the bank for pre-approval on a mortgage, they've approved me for about double the amount that I personally felt comfortable paying and knew I could afford.

Is that their responsibility or mine?

Maybe what we need is to have more heavily regulated truth in lending, and more education about personal finances and money management in the schools. Just thinking aloud here....not really having an answer.

I understand the feeling of "screw this, I'm never going to get even on this mortgage" and the urge to walk away on the part of people who bought at the peak of the market. But what about those (like this house's previous owners) who bought low, refinanced like mad to play, and then walked away?

For me, those are two very different scenarios.

ETA: Grant, I totally agree with one thing you mentioned and then forgot to include it
In my opinion, the biggest speculators in this real estate disaster were the banks. They made loans that were absolutely ridiculously inflated, and fed the real estate bubble all along. They, of all people, should have known better....and been saner...in both the amounts they loaned on property, and on the types of loans they made.

Jo, I'm in total agreement with you on the fact that I think that too many people, in general, don't know enough about how to use money, and how financial matters work, like loans, interest, etc. Spending money is a huge emotional issue for many. How many times have we seen people refer to spending money for emotional reasons call it "retail therapy"??

As a post-Greatest Generation group of Boomers, Gen X'ers, Gen Y'ers, etc., we're used to "good times" and all of these wonderfully new gadgets, gizmos, cell phones, IPads, E-Readers, whathaveyou. More specifically, we've bought into the idea that we (generic "we") have absolute entitlement to these and that we should have them, even if it means going financially out on a limb for them and buying them with funds we don't have now (the credit card phenomenon)!! The media and sales/marketing has conditioned us to believe that. It's been pushed on us. At the same time, no one has really taught us, as a group, how money works. I recently read the book, "Rich Dad/Poor Dad" and it really hit me how even the best and most money-savy of our parents/elders never really taught us how to handle money responsibly. Oh yes, I think we've all gotten such vague direction as "don't spend more than you make", and "pay your bills on time" and, "save your money", but how many people here have honestly been taught, by their parents, or even their educational systems, how to buy a house?? What about how interest actually works, and what the various types of loans are out there?? How many people, before they entered those mortgage contracts that were sold to them by predatory lenders, took the trouble to educate themselves about the home buying process?? Did anyone ever teach these same folks to sit down with a pencil and paper (and a calculator) to do simple addition and subtraction so they could figure out for themselves how much they could spend and how much they should save?? How about figuring out a simple household budget?? Not many, let me tell you.

Money matters have gotten far more complicated, over the years, and education about these things just hasn't happened. That's how we've all been hoodwinked. If you dumb people down, you can take advantage of them. Simple as that. This is one big thing I am so angry about, in recent years. This country has been systematically dismantling our educational system and it's been happening right under our noses, while we're distracted with games, gadgets, television, too damned much entertainment and too few useful financial education programs in our schools. Does anyone remember the old Economics classes we used to have in the 60's, 70's and 80's?? Those have gone nearly entirely away. Those classes, for those who can't remember them, and those who never heard of them, were the ones that taught us how to balance a checkbook, how to make a simple household budget and how to calculate interest and use a basic expenses spreadsheet. We're just not teaching our kids these skills anymore and now an entire generation(s) has been the victim, wholesale, of financial swindling. This is criminal, but we allowed it to happen!!!!! No fucking wonder our children are afraid to face the world when they graduate from our high schools these days!!! Where is the fucking outrage???

This entire financial crisis, worldwide, is the simple result of our being completely and totally distracted by the commercial world, while the carpet was slowly being yanked out from under us. We let it happen.

IMHO, there's nothing left to do now but revolt.

I think another American Revolution is on the new horizon.

~Theo~