Better Business Practices

As my few readers may or may not be aware of, subprime lender New Century Financial Corp has lost over 90% of its stock value and is nearly out of business as it cannot meet its obligations to shareholders and to its own bottom line. There are many companies that aren't profitable years in a row. However, very few of those companies literally gamble with stockholders money and at the same time rip off the consumer.

Capitalism is a wonderful thing as a progression from Mercantilism...but a horrible things when even in the most highly regulated industry a company can act the way New Century and other subprime lenders have. These companies acted in a very irresponsible manner. They extended credit to those who did not qualify. Our parents tell us that money doesn't grow on trees...apparently subprime lenders didn't take this to heart.

Yes I am going to keep linking that site every time I mention subprime lenders. In my work with and for Primerica FInancial Services we routinely run across families and individuals ruined by these kinds of practices. Forget about what is going to happen to the company and to its employees as that is not important. What is important is that these people to whom credit was irresponsibly extended will now most likely have their houses or condo's taken away from them by whomever buys this debt. The debt is not going to disappear...there is no fairy fucking godmother called the IMF that can just zero out debt for the consumer...no only governments have that privilege and even then it is not easy...the IMF most times would rather drive a country to financial ruin...but that is another article.

These people aren't going to get away with essentially theft of shareholder $$. Those mortgages were an investment that is contractually bound...and the contracts are not broken because the originator of the loan goes bye bye...noooooo its not that easy, the contract shifts to whoever buys the debt. And no you can't renegotiate. These people had better be glad that there are no more debtors prisons any more.

The company had horrible (but legal) business practices. The people however had horrible (but still legal) judgment. The problem there is that you (the lend-eeeeeee) gets held accountable more then the originator (lenderrrrrrr). So each and everyone of those people will be foreclosed upon...now for those of you who are smart about property you will be able to find some bargains coming on the market soon so keep your eyes out.

I know...I know..it seems bad to say you can profit form their misery, but the investment bankers who come knocking want to get rid of this debt (which the industry is legally obligated to split up evenly among the largest firms). So do your country a favor and buy this property...rent it out and pay off your fixed rate fixed term home loan in half the time.

I just told you how to become wealthy

If I wasn't already up to my eyeballs in debt I'd do it.

Cheers