Monday, October 16, 2006

Americans In Debt

This won't be a big post as Carl and I have written before about the debt problem in America before on this Blog.

In the Chicago Tribune Magazine section yesterday, the cover story was about how Americans will be soon swimming in a sea of debt. Here's the section that irks me . . . Tessa Thouma, of Carol Stream, Illinois gave her story about how she got into debt. Ms. Thouma bought a condo in Carol Stream in 2005.

Get this, she got to avoid putting a cash down payment by taking out an interest-only mortgage at 7.8% and a second mortgage at 10.9% to cover the down payment.

Stunning. I'm absolutely stunned. If you ask me, laws in this country should be set up to make these types of transactions criminal. Remember, once the deal's done, the mortgage company or bank doesn't care. They know that they'll get their money.

You may call me crazy, but that's why laws are passed. To sometimes protect people from their own stupidity and vanity. To protect Ms. Thouma from herself.

PS Indy posted this but something was foo-barred with blogger and it came up three times so I deleted it and re-posted it under my name

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