In an article that prolly deserves more attention (or less, really) Megan whips out this whopper:
You know who made most of the money on the subprime bubble? Anyone who bought a house in the last ten years. Yes, that's right, you, with your low fixed interest rate on a reasonably sized house. You're the profiteer who laughed all the way to the bank.Megan is so clueless here that it's astounding. She thinks the people who massively overpaid for their houses and are threatened with foreclosure and/or bankruptcy are the ones that made out like bandits?
NO, YOU FUCKING IDIOT! The ones who made the money are (aside from the hedge fund managers and such) the ones that SOLD THEIR HOUSES. See, when prices are artificially inflated, it's a good idea to sell things.
I know that "buy low" and "sell high" are complicated economics concepts, but you'd think that Megan would've picked it up somewhere. I guess that little factoid isn't buried up her ass with the rest of the "knowledge" she craps out.
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Could she be this clueless? She couldn't be. It's jsut her disgusting attempt to shift blame away from banks, investment houses and hedge funds, so the bailout will pass. I hear Congress is getting an earful from a lot of unhappy people. So Miss Megan is trying to smooth over troubled waters and keep her job.
There's pathetic, and then there's Megan.
Call me nuts, but I actually think she is speaking to people who unknowingly profited when they won fixed-interest mortgages.
For example, a good friend bought a studio apartment on the corner of Bond and Lafeyette for $500K in 1998. Did he know it would sell for $1M today? He took it to the bank.
Or my girlfriend. She got her mortgage in 2006, but unlike many other people, she got a traditional 30-year fixed loan. It is probable that the value of our co-op will rise in value (albeit, not 100%). She profited too.
I think Megan is trying to say that people who played by the traditional fixed-rate rules made out pretty well....if they live in New York!
Your friend who bouht in 98 is an example of someone I was talking about. He got in before the bubble and made a killing as prices artificially inflated.
Your second example doesn't contribute either. They're paying their mortage and so have no role in the crisis which is based on unpaid mortages. Also, their buying in at 06 means the value won't go up as fast as it had.
NYC, whose prices are always high, was largely insulated from this bubble (or maybe it just hasn't popped there yet). You have to look primarily at sub/ex-urbs and smaller cities to see the real effects. A friend of mine bought a house for 150K 45 minutes from SF. A few years ago it was worth 600K. That's the kind of numbers that made this crisis.
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