Friday, April 28, 2006

Easy Money at The Bank?


'Easy Money' available at Chevy Chase Bank in Silver Spring, MD

In those nifty blue 'Smart Home Loans. Smart Home' brochures there is one line:

"Your're in Contol. Pay interest only on the amount borrowed*."

* Payment of interest only will result in a balloon payment at maturity.
[this was written on the back side of the brochure in small print]

Are you really in control? H*ll no, at maturity you are at the mercy of current interest rates as the fixed interest only period last for two years.

Are there any banks out there that are more responsible? Banks that don't promote all this 'easy money' and 'debt is freedom' mentality?

To bad I have some of my money at Chevy Chase Bank.

6 comments:

  1. I've heard it phrased as "debt is wealth". Very reminiscent of Orwell's 1984.

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  2. Outrageous sales tactics.

    A Redskins fan

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  3. Oh come on. Banks are in business to make loans. If some dope overextends, it is his own fault. Nobody is holding a gun to anyone's head. Stupid is as stupid does.

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  4. "Oh come on. Banks are in business to make loans. If some dope overextends, it is his own fault. Nobody is holding a gun to anyone's head. Stupid is as stupid does."

    A bank should NOT hand out loans to people which are likely to result in a foreclosure. Banks have a certain societal responsibility including to make loans that are reasonable. Just because people are uninformed or stupid does not give the right to banks to lend out loans that have a significant risk of destorying people financially.

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  5. Sounds like the "twinky" defense. Where does personal responsibilty come into play?... Chevy Chase is very conservative. If someone qualifies they will be approved. If they have lied to qualify or, spending their equity is not prudent, whose fault is that?

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