Quote:
Originally Posted by Atticus
How would it be through zero fault of their own?
If you're talking about the ones that had a mortgage they could afford but then got laid off or had health issues etc then I agree. But if they knew they couldnt afford the mortgage when they signed the papers or could only afford it if the boom times continued then the blame has to at least partially side with the borrowers.
On a diff subject: What part of Maui did you live? My wife and I love it over there and have considered buying a place. Just curious on your thoughts.
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That's just it. Because of the recession people are loosing their jobs. It's a downward spiral.
"Bob" invests all of his money into opening up a Wendy's restaurant in a town that saw a 200% population increase in the past six years. Easy money to be made there because everyone except for Baddog has a fast food burger every now and then. Two years later the housing market crashes, no one is buying his burgers, and restaurants are closing faster than porn programs. Suddenly he's out of business.
But that's just the beginning.
He had a modest house with a small mortgage payment, but he lost everything he invested into the business, and on top of that he's unemployed. No one is interested in hiring a failed business man, not to mention he is competing with everyone else in the job market. Through no fault of his own, he's out of work and now loosing his house.
What about "Kenny" the guy who flipped the burgers at Wendy's? He barely made minimum wage, but now he's out of a job. For every restaurant in town that closed, twenty people joined unemployment and he's trying to compete against them for their jobs. More people looking for jobs and less jobs to be had.
In the mean time, both Bob and Kenny have less disposable income to buy fast food burgers from Burger King or the Mexican restaurant or whatever. And because so many other people can't afford to buy burgers or whatnot, now other businesses are at risk.