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A NY Times economics reporter and his own experience with an Alt-A mortgage that he cannot pay

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MattH
Senior Contributor

A NY Times economics reporter and his own experience with an Alt-A mortgage that he cannot pay

Article

By EDMUND L. ANDREWS

 

If there was anybody who should have avoided the mortgage catastrophe, it was I. As an economics reporter for The New York Times, I have been the paper’s chief eyes and ears on the Federal Reserve for the past six years...But in 2004, I joined millions of otherwise-sane Americans in what we now know was a catastrophic binge on overpriced real estate and reckless mortgages. Nobody duped or hypnotized me. Like so many others — borrowers, lenders and the Wall Street dealmakers behind them — I just thought I could beat the odds. We all had our reasons. The brokers and dealmakers were scoring huge commissions. Ordinary homebuyers were stretching to get into first houses, or bigger houses, or better neighborhoods. Some were greedy, some were desperate and some were deceived...I had already written several articles about the explosive growth of liar’s loans, no-money-down loans, interest-only loans and other even more exotic mortgages. I had interviewed people with very modest incomes who had taken out big loans. Yet for all that, I was stunned at how much money people were willing to throw at me...In the euphoria of moving in together, we both succumbed to magical thinking about ourselves, as well as about money.

 

Edited to add: I posted this in the morning after seeing it on the NY Times website.  Driving home from work this evening I heard the reporter interviewed on NPR.

 

Message Edited by MattH on 05-15-2009 06:45 PM
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
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Message 1 of 6
5 REPLIES 5
MattH
Senior Contributor

Re: A NY Times economics reporter and his own experience with an Alt-A mortgage that he cannot pay


@MattH wrote:

Article

By EDMUND L. ANDREWS

 

If there was anybody who should have avoided the mortgage catastrophe, it was I. As an economics reporter for The New York Times, I have been the paper’s chief eyes and ears on the Federal Reserve for the past six years...But in 2004, I joined millions of otherwise-sane Americans in what we now know was a catastrophic binge on overpriced real estate and reckless mortgages. Nobody duped or hypnotized me. Like so many others — borrowers, lenders and the Wall Street dealmakers behind them — I just thought I could beat the odds. We all had our reasons. The brokers and dealmakers were scoring huge commissions. Ordinary homebuyers were stretching to get into first houses, or bigger houses, or better neighborhoods. Some were greedy, some were desperate and some were deceived...I had already written several articles about the explosive growth of liar’s loans, no-money-down loans, interest-only loans and other even more exotic mortgages. I had interviewed people with very modest incomes who had taken out big loans. Yet for all that, I was stunned at how much money people were willing to throw at me...In the euphoria of moving in together, we both succumbed to magical thinking about ourselves, as well as about money.

 

Edited to add: I posted this in the morning after seeing it on the NY Times website.  Driving home from work this evening I heard the reporter interviewed on NPR.

 

Message Edited by MattH on 05-15-2009 06:45 PM

 

 

Turns out there's much more to the story: his wife was a serial bankruptcy filer:

 

Article

 

There's a loooong list of comments on the article, including this gem:

 

We're apparently going to have new regulations to protect college students from credit cards -- should we also consider new regulations to protect middle-aged men from ill-advised divorces and remarriages? After all, a middle-aged man can get himself in one hell of a lot more life-destroying trouble with child-support, alimony, and a second family than a college student with a Visa card.

And did Andrews really think nobody would dig up his wife's bankruptcy? I mean -- isn't he in the news business?

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 2 of 6
haulingthescoreup
Moderator Emerita

Re: A NY Times economics reporter and his own experience with an Alt-A mortgage that he cannot pay

Wow, I would never have written such a sob story about myself in the first place, and especially if my spouse had such a history.

People just amaze me.


eta: ROFLMAO --I've been reading through the comments and just found this gem:
Going back to the original, original article:

"Patty was brainy, regal, sexy, fiery and eclectic."


Next time, Doofus, maybe you ought to look for a girl who is short, flat-chested, average-looking or maybe even a little chubby, good-natured, hard-working, responsible, and brainy enough to balance a checkbook.

Hee hee...
Message Edited by haulingthescoreup on 05-22-2009 03:37 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 3 of 6
Watchmann
Valued Contributor

Re: A NY Times economics reporter and his own experience with an Alt-A mortgage that he cannot pay

Jeez .... the 'Greatest Generation' of The Depression and WWII era certainly raised subsequent Loser Generations.  Another individual who things everything that comes out of his mouth is of supreme importance and wisdom.  The guys a loser who lived (way) above his means by his own volition.  We are to believe the guy was so caught up in his lifestyle that he couldn't help himself??  BS.  It makes me angry that all the Americans who live within their means, and pay their bills, now are being asked (no, forced) to bail out people like this.  A slippery slope indeed.  I AM NOT AMUSED.
Message Edited by Watchmann on 05-22-2009 10:29 PM
Message 4 of 6
Anonymous
Not applicable

Re: A NY Times economics reporter and his own experience with an Alt-A mortgage that he cannot pay

Great articles Matt.  Andrews has no one to blame but himself - and his wife.

 

 

Message 5 of 6
MattH
Senior Contributor

Re: A NY Times economics reporter and his own experience with an Alt-A mortgage that he cannot pay


@Scout1965 wrote:

Great articles Matt.  Andrews has no one to blame but himself - and his wife.

 

 


Thanks!

 

Here's the latest from the blogosphere about the story:

 

Posting

 

 

 

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 6 of 6
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