As I have been saying all along the subprime "crisis" is not subprime at all. It is a borrowing too much crisis. The MSM, always about 18 months behind the curve is starting to see the light as well.
NEW YORK (CNNMoney.com) -- Cleveland's foreclosure crisis is no longer a problem that's just for the poor. In the city's central neighborhoods, it's been common for years: Low-income homeowners living on a financial edge were also preyed on by abusive lenders during the nation's recent housing bubble. But now the mess has spread to Cleveland's wealthy suburbs, where delinquency filings have
exploded over the past year despite residents' relative prosperity and supposedly
higher education levels.
Hmmm, rich people falling behind on their mortgage payments? Why how could that possibly be? Jesse Jackson and Hillary along with the Idiot-in-Chief have been telling us this was all due to poor, uneducated people getting taken by evil bankers. How is it possible wealthy sophistimacated well edumacated people are in trouble?
Answer is easy. Everyone got greedy. Rich, poor, black, white, Republican, Democrat. Everyone saw easy money and the lure of a never ending housing boom and jumped in on it. The poor got the subprime loans they couldn't afford. The rich got prime loans they couldn't afford. It doesn't matter at the end of the day, it's all relative. If you make $30K a year and get a loan for $300K it is the same as if you make $100K a year and get a loan for $1M. In both cases you cannot possibly afford to pay the loan back. Calling it subprime or prime or calling it Fred is meaningless. It all amounts to the same thing.
And what the hell does education have to do with it? Is the reporter somehow implying that a college education makes one immune from acting like an idiot? Greedy people come in all shapes and sizes and all education levels.
The college educated guy making $80K a year was the one HELOCing the shit out of his house to buy the Hummer, not the $20K a year strawberry picker. The $20K a year strawberry picker was hoodwinked into buying the "American Dream" of home ownership. That was stupid, but it was different and I have some (very little) sympathy for him. The $80K guy was just plain old greedy and had to keep up with the Joneses. He had to buy the hummer, take the trip to Fiji, buy his Brittany, his precious daughter a $2000 doll house so Dakota next door would feel jealous. And he was also the guy at the office telling everyone what a genius he was for doing all that and how foolish people who didn't "tap their equity" were. God knows I met enough of those douche bags to last me a lifetime. And I have absolutely zero sympathy for them.