We recently heard this story from a friend who knows something about the financial crisis this country is undergoing.
A couple of years ago, a guy went from bank to bank to try and get a loan to buy a new car. His credit rating was lousy, and he was turned down each time.
He then decided to buy a house, and even with no down payment and his terrible credit record, he nevertheless got the financing to go ahead and become a homeowner. This was, of course, when home prices were sky-rocketing. Now, he could use the equity from his house, and go back and buy his car. And so he did. Instead of a Honda Civic, he went for a Lexus.
Ridiculous? Makes you wonder how many others with abysmal credit histories did the same sort of thing before the house of cards collapsed.
No comments:
Post a Comment