Belemba

Negative Equity the Driving Force Behind Subprime Defaults

So, if interest rates and Fed rates have dropped so much, how come these savings are not being passed on to mortgage holders?

The drop in interest rates should have ensured that all mortgage holders, including most sub-prime mortgage holders could EASILY AFFORD TO MAKE THEIR PAYMENTS IN FULL EVERY TIME. Instead, greedy bankers are keeping the savings for themselves to help repair their shattered profit stream, with a view to being able to give themselves undeserved bonuses yet again.

Is it time to storm the Bastille again?