Strategic Default and Walk Away from that Albatross of a Mortgage – Strategic Default increased by 68 Times from 2005 to 2008 in California. The Economic Psychology of Walking Away and is a 200 Point Drop in Your Credit Score Worth Holding Onto a Property?
As the stigma wears away and more Americans find themselves with unmanageable housing payments, many are making the conscious decision to walk away from their mortgage. What occurs in a walk away, as opposed to a standard foreclosure, is the borrower is making a business decision to stop making their housing payment. Now this compares [...]
Savings and Deposits and the Zero Percent Bank Account – Punishing the Saver for a Nation Fueled by Debt Consumption.
The current financial system is designed to punish savers. The Federal Reserve by cutting the Fed funds rate to virtually zero has made it a disincentive for people to store any of their wealth and get any acceptable return. If we look at savings account rates you will find that many banks are offering from [...]
FDIC and Rewarding the Risky Banks. How a Safety Net Hides the Risk in Banking. When Your Bank is Failing or is Emerging from Failure Offer Good CD Rates.
There is a fascinating phenomenon that occurs in the banking system when capital is running short. At least, this was the case before the government decided to be the ultimate financial backup for the entire banking structure of our country. Places like Washington Mutual or Countrywide were offering stellar rates on various savings vehicles only [...]