I'm 29 Years Old With Nearly $1,000,000 In Debt

[GreenMirror]

It wasn't a financial crisis, it was a banking crisis.

Wikipedia disagrees.

HTH BISDI

[scooterscot]

It's not that it is wrong as much as that financial crisis is a broader term for banking crisis.

[woohoo]

It's not that it is wrong as much as that financial crisis is a broader term for banking crisis.

Well as the old saying goes, if you owe the bank 80k you have a problem. Owe a million and they have the problem.

[DimPrawn]

I remember those seminars on how to become a property millionaire starting by putting down a deposit on a credit card.....

Where are they now eh?

Probably sitting on £10m worth of property equity.

[NickFitz]

Indeed. Teaser rates they could afford. Once that ended they were stuffed.

Also playing a part was mortgage securitization. And the reuniting of retail and investment banks.

I heard of someone at Lehman. £4m house. £4m mortgage. Secured on Lehman shares. So when Lehman went, he ended up with his parents.

As I recall, it was recently shown that much of the turmoil in the US housing market arose from middle class (in the British sense) people using easily-obtained mortgages to purchase multiple BTL properties, then walking away from their "investment" when things started going pear shaped. Though many people on lower incomes undoubtedly screwed up, they were far from being the crux of the problem.

[NotAllThere]

As I recall, it was recently shown that much of the turmoil in the US housing market arose from middle class (in the British sense) people using easily-obtained mortgages to purchase multiple BTL properties, then walking away from their "investment" when things started going pear shaped. Though many people on lower incomes undoubtedly screwed up, they were far from being the crux of the problem.

According to the Big Short film, it was people getting BTL, but it wasn't middle class, it was working class.

[scooterscot]

The working classes are about to be rogered again. And it's not their fault. Still should provide some nice buying opportunities.

[NigelJK]

As I recall, it was recently shown that much of the turmoil in the US housing market arose from middle class (in the British sense) people using easily-obtained mortgages to purchase multiple BTL properties, then walking away from their "investment" when things started going pear shaped. Though many people on lower incomes undoubtedly screwed up, they were far from being the crux of the problem.

Would make for a good subject in the Monday links ...

[vetran]

Would make for a good subject in the Monday links ...

Indeed