We are (mostly) all slaves to the banks folks

[TwixVoy]

I remember the day I first heard the phrase "50 year mortgage". It was back in 2003. It was the first time I had heard it in the context of being a serious/real mortgage option.

I thought to my self at the time - is this for real? Could it be?

My first thought was who in their right mind would want such a mortgage? Obviously a 50 year term was being offered because prices had risen so high, and wages had NOT kept up, that it was starting to become necessary in order for people to even make minimum payments. Of course I knew we would see serious trouble in the future, but that is a different post.

50 year mortgage. Think about that. If the housing situation had not gone to hell - let's pretend the economy was still appearing to work just fine today - people would likely now be considering a 50 year mortgage both necessary and acceptable.

Most people in such a mortgage would likely never truly own their own home. Let's be realistic. Let's say you bought a home at 25 years old. Your last payment would be on your 75th birthday. TEN YEARS AFTER YOU (IN THEORY) WOULD HAVE "RETIRED". Should you be so lucky to live that long of course. The bank of course all those years makes off with a bundle in interest. Who the hell considers it acceptable to own ones home 10 years past retirement age? I think even 30 years is pushing it.

What scares the hell out of me is that the typical American citizen is willing to finance damn near every aspect of their life. They are willing to finance their home, their car, their education, their consumer purchases, even their damn grocery store purchases and medical care expenses. After the bankruptcy reform legislation passed it essentially blocked most people who eventually "maxed out" on all the financing from EVER escaping required monthly payments to the banks possibly until the day they died.

Every day we make payments to our overlords at Citi, Chase, Bank of America, etc. They own EVERYTHING. We pay them for the privilege of maybe one day paying for it all and actually owning it our selves for the few remaining years we are around.

Now I am not saying we should be able to live like kings. But god damn - why the HELL should I have to go in to debt for 20 years to pay for medical care? For 20 years to pay for education? For 50 years to own a home? For who knows how many years on revolving debts?

Now the corporate executives at these banks take our freaking 401K money (in the form of worthless stock that it is invested in), and now our tax dollars... all the while they are living like kings buying 50 million dollar jets and redecorating their offices for $1 million. And this is just what we know about folks. I can only imagine the shit that the media does not report.

We have millions who have been laid off. Why there are not protests in the streets amazes me. The founders of this country are rolling over in their graves.

[defendandprotect]

1. But . .. the tables have turned and the banks owe us now . . .

we could bring them to heel - turn the tables ---

NATIONALIZE them -- but certainly don't set them free to do more of this s---!!

[TwixVoy]

2. They owe us jack shit

Let's be real. They own our asses.

Right now we are approaching the end game. The end game involves the US dollar dropping in value like a rock. We will be a poor nation. Mark my words. Ten years from now most people won't dare make a purchase that isn't absolutely required to keep them alive. Play time is over. They are taking us for all we have and they will get away scott free. We will be left holding the bag, and most will struggle just to make it. Once we hit that point (most people won't even see it coming) there will be no going back.

[defendandprotect]

10. Only if we continue to bail out capitalism . . .

Capitalism -- unregulated --- destroys itself.

Unregulated capitalism is merely organized crime.

Where is the discussion about re-regulating capitalism?

We need to re-regulate it to within an inch of its life --

In fact, we need to drown capitalism in re-regulation and move on

to economic democracy.

Yes -- the Treasury has been bankrupted by thieves/warprofiteers ---

if we fail to recognize that we will not demand reform.

And certainly we cannot afford war -- nor the current MIC budget!!

[The Brethren]

3. True. And truth be told,

we're also slaves to our government thanks to laws put in place to control us, in particular since the 90s. It's hard to even call our country a democracy any longer. But it's probably better, I suppose, if more Americans weren't aware that we've been sold out. :sarcasm:

[TwixVoy]

4. The reality is going to hit them in the face like a brick

trust me.

The mega corporations aren't going to be generous. They won't be handing out raises, or even jobs for that matter.

Now that people have lost the ability to use the house as an ATM machine they will find it increasingly difficult to finance everything in life.... LOTS of people are going to suddenly find themselves in hard times. It will get increasingly worse over the next year.

Mark my words. Bookmark this and come back to it a year from now.

[The Brethren]

6. Yup, and businesses are already finding their

approved credit lines locked -- which also means less or no money to cover pay-rolls. The repercussions to what is happening is the domino effect. It's inevitable. One of the sad things in all of this that much of it is not new, it has happened before, and economies run cycles.

I saw this coming about 2 yrs. ago because factors were happening that lead in this direction. I had hoped I was wrong. My partner and I took steps, esp. this past year, to prepare for the crisis. We secured our home and resources. I have also been trying to work with family and friends to help them do the same. If our bank mergers or closes, we have set up a back-up plan for our finances.

What is frustrating to me is that I have no control over what our government, the banks, and large corporations will do -- none I generally trust to begin with. I really hope more people stop and look at where they are financially right now, including if they still have a job, and make plans for themselves. If you do, even if you believe we're just "going through a bumpy ride" with our economy and everything will great very soon...wonderful! But whatever you views, if you put yourself first before trusting banks and our government you will end up ahead.

[Double T]

5. The indentured slaves will eventually revolt. We have all witnessed the BIGGEST........

fraud in the history of the world under the bush administration, yet NOTHING has been done about it. Retirements and dreams have been wiped out and are likely to never return in our lifetime.

[defendandprotect]

11. How can it be that the average person recognizes the crimes, but Congress doesn't . . . ???

[Double T]

15. congress was part of the fraud, conspiracy to commit fraud and extortion.

criminals rarely accept culpability.

[defendandprotect]

16. I was stating a given ... which DU seems to have problems acknowledging --- !!!

[sandnsea]

7. It was the 125% mortgage

that was the real canary. Shoveling money at people as fast as they could.

On one of the programs today they said people aren't spending because they're nervous. Clearly too many of these experts still don't get it. Without credit - we're all broke.

[dkf]

8. The only thing you need to borrow for is your house.

Everything else you can save for.

And you probably shouldn't confuse banks with brokerages. Its the investment bankers, traders and hedged fund people that are making the super huge bonuses.

[Connonym]

9. in an ideal world

pretty hard to scratch up cash for a car though, especially if you live in a place that doesn't have adequate public transportation to get you to a job

[TwixVoy]

13. That's my point

it shouldn't be so damn hard to pay for EVERYTHING that financing everything is seen as being needed.

[RB TexLa]

12. But if you plan to live in a house for 10 or so years and have the choice of an interest only or 50

year loan that both have roughly the same payment then the 50 year loan is a great deal and something you are happy the bank offered.

[taught_me_patience]

14. You do have a choice... you can rent

People who take out 50 year mortgages choose, by their own free will, to do so... fully knowing the consequences of such actions. My wife and I have about 200k in school debt. We chose to take on that debt, fully knowing that we'd have to repay it back over the next 30 years. However, by my calculation, that 200k in debt will provide and additional $3million in wages over the next 30 years. Why, then, would that be bad debt?