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by: stickystebee
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Word Count: 335
The world is in a financial crisis and the people are feeling the pain. If you want to point the finger of blame at someone then you could spend the next week singling out culprits, however, banks and lenders definitely played a huge role. Everyone today strive for bigger and better. They live beyond their means and reach for the stars when they are barely standing on their feet and are in no way debt free. We all want a new car when the one we are driving still runs fine.We want a bigger house just year after purchasing the 4 bedroom we are currently in. We are greedy and want to keep up with the Jones’ and the banks were only too happy to oblige. Banks and mortgage companies were throwing money at individuals for new homes that were already barely squeaking by. These borrowers were ill-equipped to repay these loans and were only thinking about the excitement of more square feet and a three car garage. These easy lending practices pushed up housing prices around the world, which then skyrocketed further when investors jumped in hoping to turn a quick profit expecting even further price increases. But what comes up, must come down.
As these sneaky lending practices slowed and then came to a screeching halt in 2006 and 2007, the housing prices plummeted. The housing boom crashed and burned and now threatens an economy-wide disaster. Millions of homeowners are definitely feeling financial distress and it is certainly painful. This is especially hard on individuals that borrowed heavily in recent years never foreseeing the dangers that lurked ahead for the economy. Many families have lost or are in the process of losing their homes. Many people are turning to bankruptcy in hopes of salvaging something. Some are fighting to renegotiate the interest rates and other terms with their mortgage lenders. Consumers will be forced to learn the importance of becoming savers again after years of borrowing money for whatever they desired.
About the Author
In this current financial situation many more people are focusing thier attention on debt management and are having to consolidate debts.
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