Well my house was just filed for foreclosure.

[The_Healer]

You should probably keep quiet for a while on financial issues for a while... its not like Greece have some of the worst financial problems in the world or anything...

What the fuck does that got to do with this issue?
No one has lost his house over a $400 bank or state debt in Greece!
So IF the OP is right, I'd say the US is in deeper financial trouble than Greece.

Now I wasn't trying to offend you, just an attempt at topical humor.

But if I may say, your logic makes no sense to me. Technically, people losing their houses over a $400 debt shows efficient banking, the type of banking that would keep the debt from growing and eventually becoming un-payable.
No its not a very nice way to do business, but it means that the bank won't end up with a bankrupt client who can pay them nothing back - hence emulating the mortgage crisis.

 

[The_Healer]

Effective banking would be to deny a loan to someone who's unable to pay $400. So you think it is appropriate for a bank to file a foreclosure on a $150,000 house for a $400 debt? How does creating more homeless people help the economy exactly?
The crisis you speak of was caused because banks granted loans to without running thorough checks on their clients finances. Why bother, if you have a system like the one you're suggesting? This is actually a good motivation for the bank to give away loans to people that cannot pay them back in order to essentially steal their houses.

Savvy?

Who said anything about making them homeless? A lot of people live in houses much bigger and more expensive than what they actually need and hence might be able to afford the repayments on a smaller house.
And no its not a case of them stealing people's houses, because the idea of a mortgage is that you slowly repay the bank for loaning you the money and in essence slowly earn the right to call the house your own. Sure the people live in the house, but unless the mortgage is paid in full, they don't own it completely.

Of course its impossible to know the specifics in this case, but if the bank is taking the house for a $400 debt, they must see very little chance of the debt being paid and must also have a large amount outstanding on the loan. Hence they take the house and sell it in the hope of getting their money back before the debt grows - making it worse for both the bank and the family.

I can't be bothered to argue with you about this, as financial issues bore me immensely. I propose we agree to disagree?