Wanna know why the economy is bad shape?

Let's say you want to buy a house for $100,000. You own a couple of other houses and rent them to people who can't afford to save up the required 20% down-payment of $20,000 plus closing costs.

You have great credit. You have been prudent and worked hard to save over the years. You have invested to make sure you would have an emergency fund and your peeps could go to college. You don't drive a new car and you don't have a flat screen tv, although your tenants can always seem to afford one.......hmm??

Let's say you call the bank to buy the $100,000 house. The bank informs you that since they made terrible decisions and loaned money to people who couldn't afford houses in the first place, that you are now required to put 25% down, and they will charge you a 1.5% increase in the interest rate because you are buying an "investment" property.

How would you feel about that? Would you still buy the house?

Ever wonder why people who have a little money to spend aren't spending it? Maybe because they are tired of being punished for Not Living Beyond Their Means.

How would you feel if you were the seller of this house? Wouldn't it be terrible that the buyer would walk away even though they were putting 20% down (assuming the buyer would be able to accept the interest rate)?

How would you feel if the SAME bank at the end of the SAME phone call in which they informed you about the 25% down offered you a credit card at 7.99% interest?

Have you ever tried to buy a house on a credit card? No closing costs and no annual fee. Hmmm.