Juggling Dynamite

Mortgage brokers driving Lamborghinis… We have learned zero from the 2008 financial crisis.  Coming ’round again for sure, stay liquid.  See:  Getting rich on government backed mortgages:

Many of Christian’s customers have no savings, poor credit, or low income—sometimes all three. Some are like Joseph Taylor, a corrections officer who saw Christian’s roadside billboard touting zero-down mortgages. Taylor had recently filed for bankruptcy because of his $25,000 in credit card debt. But he just bought his first home for $120,000 with a zero-down loan from Christian’s company. Monthly debt payments now eat up half his take-home pay. “If he can help me, he can help anyone,” Taylor says. “My credit history was just horrible.”

Christian can do this kind of deal because he is, in effect, making the loan on behalf of the federal government through its most important affordable housing program. It’s a sweet deal: He gets his nearly risk-free commission. Taylor puts no money down. If things go south, the government ultimately bears the risk.

The second episode of the six-part Netflix docu-series ‘Dirty Money’ is on payday loans and should be seen.

Payday loans have grown into a booming predatory business over the past decade.  The cost of borrowing exacted through transaction and ‘administrative’ fees effectively circumvent criminal interest rate prohibitions and are helping to keep poor people poor.  Greater protections from predatory financial products and services are much needed and are a vital part of the financial and social strengthening phase ahead.

Here is a direct link to the trailer for the series.

Danielle was a guest with Kerry Lutz on The Financial Survival Network, talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.  Here is a direct audio link.