Quote:
Originally Posted by justaquestion
Um, no.. We have so many people deeply in debt in this country because the economy crashed as well as the job market. There is an accepted difference between being in debt, and financing something. Our economy will never touch what is was in the late 80s/90s but guess what? People still financed then.
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Yes, and the qualifications to get those loans was much more strict back then. Handing out loans like they were candy to people who the banks knew damn well would default on was the the fault of Congress and the Consumer Reinvestment Act('92, '95 changes), NOT coincidentally right after the dates you posted.
The rock bottom low interest rates you see on homes and cars directly results in 110% worthless savings accounts. People used to actually make money in a savings account. 3% is pathetic, yet today that is a world marvel of an APR if you're lucky enough to score it. 1% is uncommon. .05% is common.
The other guy had it right, people themselves ruined the economy with their idiotic purchase decisions(namely housing) and it had a snowball effect. Just because the bank offered you a loan for a $250000 home with a $35000 income does not mean you can afford it. That's what happened to tons of people, they accepted the loan and the APR changed(per the contract!).
You can't fix stupid.