Finance in General is What Folks Most Lack

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How come so many people signed for mortgages and now claim that they did not understand? How come so many people obligated themselves to substantial mortgage payments that they really couldn’t afford to pay? How come so many mortgage brokers, and mortgage companies allowed customers to sign for mortgages that they had no business getting involved in? I would submit to you that; it is financing in general that most consumers do not understand, and it is this lack of understanding which exacerbated the problem.
After the financial crisis and global meltdown every one tried to blame everyone else. Hugo Chavez in Venezuela blames the blonde haired, blue-eyed devils. The public and Congress tried to blame AIG for ensuring the bundles of mortgages. Those who signed the mortgages blamed their mortgage broker and mortgage companies. The investment banks blamed the rating agencies. And the rating agencies blamed everyone else, claiming everyone lied to them. The reality is that it was everyone’s fault.
Most of all, it was the fault of consumers that lacked the general knowledge in finance in the first place. The great thing about borrowing money is that you can get money whenever you need it. But with that wonderful opportunity comes an incredible responsibility; you have to pay it back. And banks don’t work for free and that money is in the investment stream so you must pay it back with interest.
If more people understood finance, took economics classes, or learned how to budget their money properly we have never been in this situation in the first place. So, I sure hope you will think about this, and understand the ramifications of your own actions. Please think on it.

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