It wasn't a law. Interest rates were low and they didn't know what "adjustable rate" meant. Interest rates get higher, they stop being able to pay for their house, bam bank lost lots of money and gets to keep the house. (foreclosure) But they don't want to. Property taxes, insurance, all kinds of expenses they don't want. They want people to buy them but no one can because so many banks lost so much money in foreclosures. Barely any houses are sold, economy is crushed. Stocks fall 1000s of points.
----
It hasn't affect me as I am just a minor, but my parents are greatly affected. Their retirement funds, $10,000s in stocks are all down the toilet.
Bookmarks