patrick.net
An Antidote to Corporate Media
1,364,620 comments by 15,736 users - Ceffer, Patrick online now
« First « Previous Comments 4 - 4 of 4 Search these comments
pkowen
@
2010 Aug 12, 3:13am
@mersenne - I think I would recongize the 'older' Porsche for what it is. I know a lot of folks who have labor of love cars (and have myself been known to do the same). I am referring to the obvious, just drove it off the lot, clearly don't have the 'usual' means to pay luxury purchase using funny money. I don't really care except for the fraud involved. I guess HELOCs have no strings as to what you can spend them on - but when *I* had one it was to restore my 100 year old house. I put every penny into the house, not toys and lifestyle.
@ SF ace - your post indicates you actually pay yours. I have no complaints. I.e. you didn't buy a fancy new toy car and then default on your HELOC. I am not against borrowing money cheap.
@lyoungblood - I suspect most didn't really plan to default, but common sense would tell anyone with a brain that house 'values' do not go up 10-20% a year forever. That's however what they told themselves, at least.
Banks should not (and regulations should not) allow people to use "Home Equity Lines of Credit" for anything but "home improvement". I.e. not for cars, TVs, vacations, etc. Just an opinion.
« First « Previous Comments 4 - 4 of 4 Search these comments
See, this just pisses me off:
http://www.nytimes.com/2010/08/12/business/12debt.html?_r=1
"The result is one of the paradoxes of the recession: the more money you borrowed, the less likely you will have to pay up."
In the bay area, lots and lots of Porsches. BMWs, Mercedes in front of modest houses. I suspect many bought with HELOCs on false equity. I even researched a couple - is it coincidence their HELOCs per County records were about the price tag of a new Porsche?
Not jealous mind you, I love my American made hot rod. I just find this to be fraudulent. I always thought HELOCs were supposed to be spent on upgrading your house, not in buying toys. I guess I "just don't get it" and "missed the real estate boom".
#housing