Are the banks squeezing the American People?
"Nearly all the top home equity lenders I know of are doing this or considering doing this," said Joe Belew, president of the Consumer Bankers Association, which represents some of the nation's largest home equity lenders.
In one brief phone call, Nancy Corazzi's lender yanked away what was left of the $95,000 home equity line of credit that she and her husband took out five months ago.
The lender informed her that her Howard County home had plummeted in value and the company did not want the risk that she would owe more than the house was worth.
"I got off the phone and I was shaking," said Corazzi, who was using the money to pay preschool tuition for her twins ."I was near tears. We needed this credit line to get us through some tough times." http://www.washingtonpost.com/wp-dyn/content/article/2008/02/22/AR2008022202987_pf.html
Our banks don't want to lend poor Mrs. Corazzi a few thousand dollars to send her twins to preschool, but they are willing to lend SPF billions of dollars to build even more specs in areas where there are more homes being foreclosed than sold? Not only that, who do you think is a better credit risk, a company owing billions paying its exectuives millions in bonuses AFTER liquidating its shareholders assets at hundreds of millions of losses or poor Mrs. Corazzi who simply wants to send her twins to preschool?