Scary article!
"Most sub-prime loans in existence are refinances not purchase-money loans. This means that more than likely they pulled cash out of their home, bought things and are now going under. Perhaps the loan they hold now is their third or forth in the past couple years. Why are bad borrowers, who cannot stop going to the home-ATM getting bailed out?"
Okay, I have no interest in a bail-out for those folks.
" Already, many lenders are locking up the second lines of credit and not allowing borrowers to pull the remaining open available credit to stop the bleeding."
Looks like the government's not the only one breaking contracts...
"Moody’s is expecting a 15% default rate among ‘prime’ second mortgages. [snip] Wells Fargo recently said they owned $84 billion of this worthless paper."
 
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TickTock Rule Of Finance - heavily discount any promises of money/benefits to be paid to you in the future
"I've traded love for pennies, sold my soul for less" -Jim Croce, Age
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