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Originally Posted by justaquestion
Um, you have it backwards. Banks were handing out mortgages more freely in the 90s, and as the economy started to slip, they continued to do so knowing what was happening. The economy crashed and nobody could pay their mortgages, meaning the banks stopped making money, hence the bail out. Today its very hard to get a mortgage, and that is because they really tightened the qualifications to fit the current economy, and its why its such a big deal on the news when you hear of banks who took bailout money and continued to lend to people they know could not pay for them had they cared enough to look.
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That's exactly what I said, 1992 and 1995 is the 90's isn't it? Congress and Clinton. Fast forward 10 years and the the problem had ballooned out of control. It was brought to the attention of Congress and those in charge of the institutions said everything was fine. Would you like to see the video of their lips moving/lying before the crash?
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Originally Posted by justaquestion
Lol wtf? Your saying that low interest rates on goods is the direct effect of savings accounts interest rates being lower? Right...
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Low APR on HOUSES and CARS yes of course. Banks make less money from the big loans, so they lower the % they pay YOU with your savings account. That's how it always worked. High home APR, high savings rates, low home APR, low savings rates. How else would it work?
The down payment is also what screws everyone over. In the '70's and '80's people put significantly more down on both cars and homes. That changed too, now you can put as little as 3.5% on a home...zero on a car.