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From: armcrash
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  • Once, I saw a man sitting under a cardboard box with a cutout for his window - his house I assume (i think he built it from the ground up with no financing)

  • i love how the american people take it right up the kazoo, no fighting back, no protest. in fact, they defend the banks and the bailout that should of went to the common people. if the bailout went to the citizens who are consumers, we would have spent the money and it would of washed back to the top. instead they kept it at the top, and the banks gave thereselves large bonuses. wake up america or get fucked more...

  • @911jediknight911 Yea, the people who were the cause of the problem, got even more power after things went to crap! Funny huh? The relationship of power and money!

  • It needs 120 years to repay the mortgages here in Hong Kong. By the time you or your grand-kids own the apartment, it has already broken into ruins.

  • @stephentsang2000 Thank you for sharing we will never get free of these sytems unless we share with each other what is going on. Japan also has more than one generation mortgages (which means death grip). Is one reason Hong Kong has a lot of business (better commerce rules) more open marketplace? I only ask because I think that is being controled then realestate is worth more in these areas, and they can then change the rules on you. Blessings

  • @wolftreetree

    The Hong Kong government uses the slogan "large market, small government" to attract foreign business investments. The income & business tax is indeed very low here, and is skewed to benefit the rich people. To balance the cheque-book due to low tax revenue, the real estate tax became the government's main financial source. Hong Kong government deliberately limit the land supply to push up the property prices, and speculators, banks & landlords work together to do the same. Damn!!

  • @stephentsang2000 Great comment. Wouldn't it be cool to see a comparison of each countries' mortgage status and the years to repay, etc. I suppose in some countries the mortgage isn't even worth the paper it is written on.

  • @armcrash

    Yes, that would be a more accurate way of measuring each country's real standard of living. Hong Kong's PPP per capita ranked 6th in the world, and yet people's living standard is even worse than people in some of mainland China cities because of the high property prices.

  • Great Video

  • What's with Beethoven's 9th?

  • The best way to earn money online from the comfort of your home. Providing full training and support you are just few clicks away from earning $100s weekly. Don't give up from your dreams just see yourcashcow.info! Your better future is waiting for you!

  • Find some homes at

    forecloseddealz.cogia.net

  • No one held a gun to these peoples homes. Most of these people had 80/20 loans and borrowed money without considering the consequences.

    I bought a house in 2000 and never refied, I sold my house and was not upside down because I chose not to cash out like so many.

    Stop blaming mortgage companies for the loan papers you signed.

  • @blauaugen63 Why would they ? Or should they? They had lousy credit and lousy job and got to live in a new house for the same amount of money as they paid for rent...You would too under the same circumstance.

  • @drummerforreal1

    This is what happens when the government tells the banks they have to loan money to certain folks.

  • Basically American homeowner are paying off a loan amount which is far higher than what the property is worth,which is what negative equity is.

  • The sky is falling in. The Global Pandemic flu is gonna get ya. The pollution is bad and wht earth is doomed cause of global warming...

    and these fear mongering jerks don't have a dime invested in the markets, either

    In 1966 you bought a house in Vancouver for $20,000 and 2 years later you bought a second smaler one fo r$18,000. THEN the market moved and today you sell that SECOND house for 2 million. Not bad return on the down of $2,000.

    Only fools listen to dweebs like you

  • @sparwood8 Try to do it now dickweed

  • @drummerforreal1  Go back under your bridge. Little troll. This post is 4 months old.

  • @sparwood8 So what? Your post makes you sound like a lucky piece of arrogant shit that happenned to be living and buying in a no lose world. BFD. Impress somebody and make some good choices now microchode!!!

  • @sparwood8 = 65 year old loser that trolls my mail box after blocking me from replying. Coward jerkoff.

  • @sparwood8 That;s cause your a bankster shill dude.

  • @sparwood8 + Gubamint fannie mae obama model buttplug shill.

  • sad and scary....

  • lol yeah some loud mouth bitch all telling her husband that he is a piece of shit and how her mamma said she shouldnt be living in a apartment. So the low self esteemed foo goes and leaverages money for a home. All because he stuck his wee wee in the wrong place.

  • Why do we ever let these people breed? Stupid people "Hooking Up" with other stupid people. Having stupid kids. And they hook up with even worse people and yet have dumber kids. At some point we need to get a handle on this. Animal breeders don't breed sick animals ones with defects. Why do we - the most intelligent species (rolling eyes) allow this to happen Ill never understand.

  • buyer beware!!!

    greed is a thorn in your side..

    live to your means.

    mean to live.

  • People can keep pointing fingers, but who is stupid enough to sign something without reading it or having their lawyer? Not to mention if I'm going to buy something on payments (car, house) I'm going to pickup a calculator and play with the interest and months of payments to see the cause and effect. Anyone signing a piece of paper thinking your going to finance 400K at 1300 a month has a hole in their head! That is a 3500/month payment! Or 4300 on a 15 yr!

  • i dont think people are at fault, there should have been laws preventing this. lenders got to buyers through the sales pitch. a lender tells you you are going to make a fortune on your house with rising home values, sells the idea to the wife, that the kids need a backyard, this i is the best time to buy, you are going to miss the boat, you can do it..etc..anyone can get suckered in given all those conditions.

  • who allowed it. who wasnt wastching this .its all set up to fail.

  • Nobody put a gun to these people's heads and forced them to take a time bomb mortgage. F 'em.

  • The banks are screwing people over and it is time for someone with a back bone to legislate new laws to protect the consumer. Oh and your attitude stinks

  • My "attitude" is called PERSONAL RESPONSIBILITY. Fathom the concept.

  • Its all very well saying that the consumer must take personal responsibility, but it is the banks who knew what they were doing who have caused the chaos in the markets. These banks should be punished, but instead the gov use tax payers money to prop them up again. You and I must pay the price for the bankers who are stealing from us. Gov need to legislate and must do it to protect the people. Fathom the concept

  • You'll be sayin' "eff me" when you're getting dragged out of your home for no reason.

  • Not gonna happen. My shit's paid for!

  • @sritger just remember not to refinance like some people tried to do....... lol

  • laws allowed lenders to do this. they profited huge. laws should have been in place that prevented these sort of loans. obviously people didnt have bad intentions and were like im going to scam the country, they just wanted part of the american dream. now banks got everyones monthly payments, commissions, possibly even down payments, and on top...they get to keep the home once the people foreclose WHILE driving everyone elses home prices down. complete swindle

  • There is a way to hold predatory lenders responsible, help people to keep their homes, and not put the tax burden on future generations. It is called term ownership. Do the research and tell your senator about it before it's too late.

  • I know people that signed these loans.Most have already lost they're homes.

  • This is a loan from a financial institution, if I didn't know better I would say you borrowed money of the fucking mafia

  • Communism not comunism.

  • Maybe we should rethink comunism and let the state gives us homes.

  • communism could work if it weren't for corrupt leaders and business men. If humans were not greedy, communism could work.

  • Communism removes the incentive for productivity. A visit to many parts of eastern europe (including russia) serves as a reminder. Its like walking 50 years into the past, stagnation, deteriorated bldgs etc.

    The capitalist system was the best in history until Americans were duped into the privately owned federal reserve.

    Greed is responsible for everything in your home. (greed isn't bad, political / economic systems are.)

  • When I started buying properties 20 years ago it was a no brainer to get 20 year AM with weekly payments.

    While Canadians were living in lala land buying left right & center in 2006 / 07 I was selling 50% of my worst income properties to pay off the best ones

    Why? Only take advise from those who've done it better than you. In this case, I listen to multi millionaire real estate investors, not the idiots on TV, or bankers who know nothing.

  • the internation bankers are just going to take your money and throw you into a labour camp like the rest of us.

  • I hope your wrong - but years of research says its either that, or a series of natural / man made disasters that will change this world drastically.

    The upside is having the means to construct elaborate underground self sufficient shelter 100's of miles away from the nearest civilization.

    The question however, is when do you go into hiding.

  • @Crazyman1212 I hope your wrong, because I'm to ill to put up much of a fight, and I have elderly parents who would be sitting ducks, sweet loving people, my dad is blind in one eye, do you think he could put up a fight.

  • WOW! If this is true, then this is a ticking time bomb! There is no time left!

  • Their goes my future,lol.

  • lol, great video. very educational. I can't believe people buying a home and never calulating the real costs...no wonder america is in so much trouble

  • America Tax payers give around one third of its foreign aid budget to Israel

    Israel's citizens are among the wealthiest in the world,

    50 million plus of US citizens cannot afford basic health care

    Israel's foreign aid allotment is 3.36 billion per year of OUR taxpayer money

    it actually works out at $50,000 dollars in aid per head of every Israeli citizen directly and indirectly.

    I dont want anymore of my taxes going to Israel what can I do?

  • Israel has 7 million people. Divide that into 3.36 billion and you get about $500 per head. Also, U.S. foreign aid was estimated at over $20 billion in 2008 (Council of Foreign Relations). So, 3.36 billion is about one sixth. But, I read this: "The $6.72 billion figure does not include loan guarantees and annual compound interest totalling $3.122 billion the U.S. pays on money borrowed to give to Israel. " (Washington Report on Middle East Affairs). Less than 1% of the stimulus bill , hehe.

  • And add to your mix that that 1/3 that is given to Isreal is actually 50% of the total foreign aid strapped on American taxpayers over the past 60 years.

  • @debrabee = Bullshit with numbers, lets try some facts. Saudi Arabia provides more USA petrol dollars than these numbers to build mosques each and every year, and even more $ to promote it's version of Islam. Israel is a real democracy unlike it's Arab neighbours and most of Asia. And Israel has more patents per head of population as their brains are their main resource. Pitty you left yours in your shoe.

  • @debrabee = Bullshit with numbers, lets try some facts. Saudi Arabia provides more USA petrol dollars than these numbers to build mosques each and every year, and even more $ to promote it's version of Islam. Israel is a real democracy unlike it's Arab neighbours and most of Asia. And Israel has more patents per head of population as their brains are their main resource. Pity you left yours in your shoe.

  • Great information! Thank you for helping educate people. Here's another resource to consider. FederalHomeLoanMods(dot)com

  • This is a fantastic video!

    Every person ready to sign on the dotted line should watch this first!

  • or better to have a realestate lawyer present.

  • lol great point (only the biggest investment of your life) - as long as the real estate lawyer is not working for the bank, broker, selling agent, appraiser, or escrow,

  • look at the demographics of this mess. Mostly in southwest..ehum.. near the Mexican boarder.

    to blame Americans is a bit of a farce.

    to blame aggressive lenders would be good.

    to blame open border policy would be finest.

    thanks for the vid lot of good info!

  • true,but many are americans of all demographics.

  • ok I am referring to proximity of the boarder.

    and the amount of sub-p lending that took place there compared to elsewhere. It's higher here.

    Not blaming illegal immigrants either. I point to those who exploited these circumstances.

    to me, it shows us that humans will do anything for a buck. even undermine their own country.

  • Good video - however it is astonishing that Americans have become so collectively stupid that someone has to explain to the them that if you just make the minimum payment, you'll never pay off your mortgage. No wonder Bush was elected twice...

  • yeah america is a scammers dream....lots of takers

  • Solution:

    watch?v=9NDnQ9eBoHM

  • Wow that was awesome!!!!!!! Goodbye economy!!!

  • congrats!

  • The Jewish bankers who caused this need to be held accountable:

    Lloyd Blankfein: Chairman & CEO (Goldman Sachs)

    Martin Feldstein: Director (AIG)

    Alan Fishman: CEO (WaMu)

    Richard S. Fuld, Jr CEO (Lehman)

    Stephen Roach: Managing Director & Economist (Morgan Stanley)

    James E. Cayne: Former CEO (Bear Stearns)

    Alan Schwartz: CEO (Bear Stearns)

    Alan Greenspan Former Chairman, Federal Reserve

    Ben Bernanke Chairman, Federal Reserve

  • yeah mainly the federal reserve... most think when they pay the federal tax it goes to the government.. we are being robbed and if everyone only knew about it this would change.. sadly this shows how people dont check these things.. just pay blindly and figure it's okay cause everyone else is paying for it..

  • Attention USA YouTube Subscribers:

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    go to ->>

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  • Stupidity is a dangerous thing.

  • This is a great and quick example of the zero sum game that the uneducated are sucked in to. You get what you deserve when you think that you deserve beyond your means. Think about it. No one gives less of a fuck about the proposed American dream than money lenders. They have their own American dream to fulfill at your expense. Get your head out of the clouds and think.

  • You are correct. The people who took these loans are not to smart. Their quest for a beautiful home blurred their better judgment. And of course the bankers were motivated by greed.

  • I also agree. People live above there means and expect other to feel pity when they loose there house. My wife and I are both college grads but the first thing we did not do was take out a 300,000 loan. Evaluate you income and expenditures and figure out what you can AFFORD. Still some people will not learn. Don't come knocking on my door and asking to help. I earned what I have. That's the way it should. No DEBT!! Anyone want to respond!!

  • It is common sense. Debt is bad.

  • Everyone was motivated by greed, including homebuyers. They expected to make money for nothing - they just call it equity. People bought homes with no money down because they wanted a life style they couldn't afford. Or, they borrowed on their 'equity' so they could have an SUV, granite countertops, and a vacation in Barbados. It doesn't require an education to buy a home. It requires some research, realistic expectations and financial prudence.

  • This is sad but what is sadder is people such as myself who bought a $300,000 home back in 2000 and put down $200,000 on it. My mtge payment is about $1700 a month due to high property taxes in NJ. My interest rate is only 5% on a 15 year FIXED RATE, NOW I am getting nervous because if I lose my job, I could lose my house and all my equity. Our governor (Corzine) keeps raising our taxes; property taxes on a 1600 sq ft house are $8,000 a year and going up, up, up. Democrats love raising taxes.

  • Srhandel You have got to sell your house FAST we are going into a Deflationary depression the value of your house is going to keep going down and down for years, all your equity will be wiped out.Dont get locked in on the slope of hope that most people will thinking prices will rise again in a few years they WONT. Go to elliotwaveinternational and pay $89 dollars for the global perspective report it will be the best $89 dollars you have ever spent.Once you have read it you will understand.

  • we have relatives in NY - I can't believe the amount of property taxes they pay. It's astounding.

    You guys need a Prop 13. I think with this housing mess, maybe it will happen.

  • gh jhgj f hc dj hfkh gfkhj fgkh

  • The U.S. debt is actually over $45 TRILLION.

  • Buyers that can, should make a 1/2 payment in the middle of the month and end of the month. I paid my loan off in half the time by this method, and my home mortgage was at 10% fixed (Fannie in 1985).

  • @ech77066

    Did your bank hassle you about doing that? I've been thinking of it but I have BOA and I'm nervous about not getting proper credit that way.

  • This is such a perfect example of what has happened!

    Predatory lenders with ignorant people signing their names on the dotted line.

    WE ARE BOTH AT FAULT.

    Consumers were looking to compete with "the Jones'" and look rich when they weren't.

    We reap what we sow.

    Remember, LENDERS ARE NOT YOUR FRIENDS!

  • million of americans stood back and did nothing when the bad people sucked from america now there going to get what they deserve

  • A vivid example of what's partly been going on with the mortgage crisis. Banks love mortgages - any kind of mortgage - because they make a lot of money on them over the amortization period, so long as the loan doesn't default.

    The subprime lenders schemed up these 'circus and pony' mortgages to take advantage of the low interest rates during the economic slowdown after 9/11. We can now see the damage this kind of lending has caused in the United States and beyond.

  • US debt now at over $10,000,000,000,000. I am running out of room.

  • Try 51 trillion

  • jobs lost in greedy banks great ha ha ha

  • 700 Billion = $2,333 per person for a population of 300 Million

    Current National Debt:

    $12 TRILLION = $40,000, per person, for a population of 300 Million

    The Fed receives 6%, by law, in dividends

    for every US$ printed... to pay loans that provide the World economy with $US dollars.

    That means $2,400, per person, just in annual interest, on $12 TRILLION, for a population of 300 Million!

    Has anyone in Congress read the Constitution?

  • the people havent even read it why should congress

  • "Current National Debt:

    $12 TRILLION = $40,000, per person, for a population of 300 Million"

    The last realistic estimate is 51 Trillion, Yet,we start more wars,and bail out Fatcat Banksters,while the country falls apart.

  • of course McCain is a real and respected patriot. But can he understand the economy mechanics? Is he able to make the right choices? See what the republican did to the economy... military budget, financial risks...

  • why did i put every penny i had into it??? cause a billionaire on tv said you'll never get rich unless your debt free. Why pay out 7% when you can get 7%, the difference is 14%!!! Banks are a scam to treat people like cattle and gain wealth over them. we are slaves giving power to a few unkowns

  • 6 years ago i bought my 4 bedroom house, paid it off in 5, 30 years till retirement :)

  • Very nice video : ) good JOB

  • America MUST RIOT if this bail out plan for the criminals goes through.

  • time to kill all the money-grabbing jews?

  • you can't do what is popular and do well, it is always the same story. And it is not just the institutions, it is mostly the people itself who just do not care about being lied to. In fact, what is happening right now, is like a tax for an ignorant mind!

  • That reminds me of my student loans

  • I gave my butt to the bank and my heart to Jesus LOL

  • Blame greedy lenders, sure, but the whole thing is built on the questionable morality of investing in real estate for the purpose of cashing in on its increasing value. The housing bubble is a land speculation bubble obscured by calling it a "housing" bubble as if houses could increase in value when all they ever do is depreciate while contractors madly increase their supply. Land speculation is a scoundrel's game since nothing is gained except at the expense of others. Sacred right of property?

  • It's nice to know that the geniuses that implemented these and other great vehicles get to keep their millions in bonuses for creating so much artificial wealth.

  • Thankfully I live in a cardboard box with a nice view overlooking the resevoir

  • Debauchery I just love my van down by the river.

  • how about this anytime u sign a legaly binging contract bring these items: highlighter, magnifing glass, microscope, and a lawer

  • Part 2 of 2:

    6) Common Sense: Mortgage salespersons had less regulation/education/licenses (or none in practice) than your personal stock broker. Why would you trust that person with the largest investment of your life - a magnitude 10 to 1000 times greater than a mutual fund investment. And the mutual fund managers trusted them :)

    7) Simple Math: U.S. students lag behind other countries' students in math, science, and technology. Make math a priority & fun. Invest in math education.

  • Part 1.5 of 2:

    3) Rich get richer - there is a metric called the "Gini Coefficient." Google it :) It lists by country

    4) Home appreciation - we have so many other examples in history. A look at Japan's housing decline in the 1990s would provide some insight

    5) Inflation - I always thought that the inevitable way to repay these ubiquitous loans were through massive inflation and devaluation of the dollar (i.e. bailouts)

  • Part 1 of 2:

    Wow - I noticed some great comments recently.

    I made the video. Here are my responses.

    1) Option ARMs: Yes, they were created for the rich who had enough in the bank to beat interest. Then, standards got more lax.

    2) Politics: Obama is against mindset of increased quarterly profits on Wall St. which contributed to lax standards for higher revenue (Option ARM). McCain is about moral and responsible borrowing. Both are good. We need to read more.

  • The mal investment should go bankrupcy as well as all companies involved including FED, then we will have correction. Bailing out mal investment at the spense of our profitable business or citizens, or through inflation debasing the dollar will just create more problems for everybody, even for the same banksters who started the whole bubble.

  • Nobody will lose their homes because they never were their homes, they never paid for them. And the world will not end, if they can pay a mortage they can also pay for an apartment.

  • Part 2 of 2:

    Secure a mortgage on bottom end of home prices as they begin to rise. Rent the place out. Just as home prices hit the peak. Sell the house and make a profit. Repeat same process for multiple houses and repeat when the time is good to do this again. That is the ARM loop hole. Investor pays ultra low rates for a short time, rack it in, and laugh at all the long term suckers.

  • Part 1 of 2:

    People, do you not understand the purpose of an ARM. ARMs were created as loop holes for investors. Actual residence were not meant to take part is this loop hole. Well, wealthy smart nomadic residents could come out on top. Which is just the definition of my use of the word Investors in my previous sentence.

  • these are the greatest videos. If they taught simple math in American schools maybe less people could have been duped into these crazy loans.

  • Bush is nothing more than an Israeli agent. A pawn.

  • I was leaning towards Obama until now! I just read the Washington Post. Obama got a sweet heart deal when he purchased his mansion. No Points, no origination fee, and a lower interest rate. Why? Because senators monitor and regulate the lending industry. he basically was paid off to look the other way and NOW our home values are dropping and foreclosures litter the landscape. Obama YOU ARE scum for taking this legalized pay off! You have cost us A LOT of EQUITY and MONEY!

  • Research Hon. It was debunked. He got a 5.6% interest rate and they NYtimes stated it was from good credit.They noted it was the going rate for the area in HydePark and he sold his 3 bedroom condo, to put as a downpayment. It was manufactured that people in the neighborhood started to complain that it was wrong assessment. This was his first home unlike does with 8 homes. Moreover, i think it was people like Dodd who got special rates.

  • good thing that we OWN our home. It's this new concept called: Having what you can actually afford!!! If own your home, this video is comical.

  • Touchet Dizzy i concur. I do not think people who lost their homes is a laughing matter for me personally but i do agree with people living within their means. On the other hand i can't feel to sorry for those who over extended themselves with ARM loans in homes they could not afford in the first place. Didn't anyone do the math or atleast consult someone who knew how to read a amortization chart? how did people not understand that a $400,000 loan at 6% is not $800 per month.

  • Can you afford gas, and food and basic health insurance? If so, good on you. This isn't my father's economy. And I hope you never get sick or injured and get plunged into bankruptcy. God bless the system. Rich get richer and the middle class get poor.

  • That is just evil.

  • Man... I might as well leave my house and get an RV

    I'm a veteran, and I got a VA and was given the impression that when my loan adjusted I would go from 5.25% to somewhere around 6.25% if it went up that year (and that its capped) and wouldnt rise much more then a point, and if it was higher the following year it would go up to 7% (etc. etc). I'm screwed, I got excellent credit but I cant afford payments like that. My house is "not comparable" to other houses so I was denied refinancing

  • LOL!! USURY LOL!!

    It takes an IDIOT to get used. L O L!!

  • You people are IDIOTS! LOL you blame the banks for your stupidity. I got my first job in 1975 while living with my parents. I saved my money. 3 jobs later while in a low rent apartment I had enough to buy my first home CASH. My wife and I still own that home and rent it out for 1200.00 / month. I owned 9 other homes out right by 2004 and sold them all by 2005 knowing that the bubble was going to burst. I now have plenty of cash free and clear and will buy when we hit bottom in 2010 - 2012.

  • Good for you tomincal. You did things the old fashioned way and it pays. But I wonder, will all your cash be worth anything in the long run? Why buy more houses? Why not buy lots and lots of good farmland instead? And, maybe a tractor, seeds and cows. And a large gun. With a scope? Just wondering...

  • I just got a letter from GMAC staating I should reiance to a FIXED loan, I dont "get it" I dont have a subprime loan and I DELIBERATELY ASKED over 6 times (husband and sister were there as witnesses) and he said it will NEVER GO UP, now I find out I have a fixed adjustable where I am at 5.25 and SHOULD refinance to a 6% fixed non adjustable??!!! WHAT???!!

    What the hell is with these people they are SO DECEPTIVE and it does NOT matter if you ASK they LIE! So we are refinancing higher now

    :(

  • I think I'll stop paying my mortgage, and when they come for my pile os stix that I worked hard building myself on loaned money I'LL just burn it and they can collect the ahes. By the way any rich folks out there wanna help buy my house off for me at $92,000 and I'll give you $1,000 a month for 10 years! By my calculations you make $28,000 in only 10 years with nothing to lose and my house would be all mine like it should be!!! Now don't that sound fair.

  • Fixing how we pay for real estate won't accomplish much until we fix the underlying economics. The underlying economics include the economics of land but not one person in many thousand understands that because after Henry George made the issue perfectly clear in the latter part of the 19th century, the vested land monopolizers hired professors to write and teach that land is capital. So what you say? Slave owners also said slaves were capital. A clue for the dispossessed of the earth. Us.

  • I LOVE THIS VIDEO.ARTHUR ROBINSON

  • I am so very thankful that I have a 5.85 fixed rate.....phew

  • USURY is only prohibited to PEASANTS (like YOU and ME), not the people "IN THE BUSINESS". Ever since NORTH DAKOTA rewrote the CREDIT CARD LAWS, Credit Card Issuers can charge ANYTHING THEY WANT, and the US Supreme Court said all the other States have to honor it.

    Your CREDIT CARD INTEREST can be as high as 30% (and more!)... plus all kinds of "fees". You probably could get a better deal from The MAFIA!

  • .....In the bible......they call it usary....renting money

  • I bought a house in Canada 3 years ago this coming May. At my bank (Scotiabank) they wouldn't even entertain the idea of a 'Teaser' rate, you could get a variable rate but they recommended against anything longer than 3-4 years.

    We locked in at 5% for a 10 year term and made sure we understood the deal in it entirety.

  • Banks have a license to steal!!! The whole system is fraudulent and rotten since deregulation and preys on people's stupidity. If there was truth-in-advertising many mortgage lenders would sit behind a desk with a ski mask on and a gun in hand as they coax the customer into signing on the dotted line.

  • Banks have license to steal and people have license to borrow without limit. Yes just shift the responsibility to someone else.

  • Well I might as well not buy a house. Poeple talk about the American dream but I don't know, heck maybe you ought to just be a millionaire and buy the home therefore you don't have any mortgage payments. If you aren't making over 100000+ you might as well not buy a house. I hear people say renting an apartment is throwing away money but heck there is more to buying a house than just signing papers. Utilities, maintenance and taxes definitely adds to the purchase.

  • but youll eventually be able to sell it, and theoretically in the long run, prices will go up so you'll maybe even make a profit, by renting you're guaranteed to take a loss, just dont get suckered into the deal this clip warns about, and you'll eventually own your home outright and never have to pay any type of rent ever again, which will definitley make up for the utility costs

  • Bought my first home last year and man, you can plan all you want, but there is a gigantic flow of dough away from you 24 hours a day once you sign off on the deal. Met a rich guy who only rented apartments, he knows how the system works.

  • There you might be right. It seems almost pointless to consider home ownership.  And renting--it is about as bad as a mortgage payment in some places. It's like, let's force the remaining would be first-time homebuyers into this scam by making rent equal to a mort. payment and sell them the idea that they could be building equity in a home instead of throwing it away. The government and greedy people have ruined something so basic as housing. It is a shame.

  • I totally agree. The idea of homes in real estate sickens me. So what is next after finally figuring out how not to be scammed? You are nearly forced to get a home inside an HOA! Or the other plague these days. You home automatically becomes an HOA without your consent. Every which way is next. Every possible way conceivable those with all the resource find ways to deprive you of yours.

  • As the dollar sheds value and loses its privileged position as reserve currency, US living standards will take a serious knock.

    If the US government cannot balance its budget by cutting its spending or by raising taxes, the day when it can no longer borrow will see the government paying its bills by printing money like a third world banana republic.

    Vote Ron Paul

  • The best warning yet, to sub prime morgatge buyers. I have seen many calculations explained, and this exceeds by far to simplify it to the core. Nicely done Armcrash!

  • Now I know why moslems thinks whom charge interests are evil!

  • Consumers are victims, always. "subprime" describes the class of applicants targeted in the mortgage scam. In 99.9% of cases the banks were/are fully collateralized. The entire mortgage writing process is a fraud. Reference the Credit River Decision 1968, Mn. and UCC exchange law. They killed the judge afterwards, but the decision still stands. Why do you think Goldman gave out $600M+ in bonuses for 2007?

  • Thank you for posting that in a way that is easily understood by all. I was a victim of the same thing, and had the same problem with re-fi. When I got my loan, the broker kept saying - Dont worry! You can re-fi before the rates go up! Didnt happen.

  • Here is the Bush plan. Your house was purchased for $500,000. You get the bailout for 5 years. Market declines or adjusts approx. 30% so now your $500,000 house is worth $350.00. The new 5 year bush loan plan at $3,000 a month which you are paying now times 60 months = $180,000. So now you own a house that is worth $350,000 30% decline but you are paying on a house that you bought for $500,000. After five years you now own a house worth $350,000 and have may no dent in your equity.

  • Truthful brokers lost customers to these option arm loans, but at least we sleep well at night knowing we did not put anyone into these loans that could not handle it.I thank God for my conscience.

  • Great video that is packed with a lot of great info. Thanks

  • Excellent, succinct video!! I wish this had been shown to all the unfortunates who ended up with these adjustable rate loans "before" they signed on the dotted line. To anyone who believes this was made clear to loan applicants, I have a house in SoCal to sell ya!

  • thanks for being one of those who see that the emperor is naked. what a shame for the future generation affected also would be theirs.

  • There you go stupid jackasses. You have done us all in because you cannot count. "I don't like math, I am an artist/writer/web designer/model/journalist(inse­rt other lame occupation where math skills and real education are non-existent). I don't need math."

    Once again the hippies have killed us all.

  • Nice elementary view of a complex loan intended for sophisticated borrowers. However - commissions are NOT higher for Option ARM loans and 12% of mortgages in 2006 also were not Option ARMS. If the figure of 12% is near anything it would be the percentage of ARM loans that were Options.

  • Thanks, but I need your sources...mine are business week. Doesn't match up.

  • I'm an economist and Chief Operating Officer for a lender. Just because a journalist wrote it doesn't make it accurate. Then that is a major part of the problem today - most of the information in use is from writers and authors and not the people with their asses on the line.

  • Sophisticated borrowers?

    That might be an oxymoron?

    Sophisticated people utilize other people's money through no guaranteed return investment contracts (you know the fine print) that might pay a small dividend. I believe many of these sophisticated people are called bankers.

  • Thank you very informative.

  • Now you're back where you started again lol. ARM's, another scam created by the criminal mortgage industry.

  • No major news network has the courage to air this segment. Instead they show some complete idiot wearing a suit and throwing out words like "fed, adjust, stable, safe, etc..." while moving their hands a lot to look like they know what they are talking about.

  • That's true - but they will air it in the future, lol.

  • 2 words..........Full Documentation

  • These amoral parasites need to be prosecuted and put in jail. Forget deregulation - bring back usory laws and ENFORCE.. still another example of our current criminal administration. Yet, there are those who still support them - the rich and the blindly loyal (brainwashed). Unbelievable.

  • Aw hell, the govt just comes in & takes it by eminent domain! No win situation!

    :/

  • The fools in this country are preparing to vote Democrat to show those dirty Republicans, right?

    Remember: There are no democrats and there are no Republicans. There are those who have and many many more who have not.

  • Just remember: wealthy people are WEALTHY FIRST and people second.

  • Some $600 Billion in ARMs will reset in the next 14 months, so we just seen the very beginning of the credit crunch. Look for a recession within a year or so.

  • Where did you get that data? I was looking for it...

  • ncntv[dot]org/events/homeowner­ship07/ppt/6_taking_up_challen­ge.ppt#9 is the best chart I've found. The author of the ppt mistakes the x axis for weeks. X axis data is months to reset as of Jan. 2007 so disregard the purple bubble.