Friday, July 9, 2010

Biggest defaulters on mortgages are the rich

The older I get, the more I now realize that many journalists write to be paid, and distort the truth to sell papers. 
Whatever happened to journalism to get the truth?

I just love the attention getting tag-line: "Wealthy simply see loss of home as one bad investment and walk away".

Why was the rapper Chamillionaire even quoted in this article?  Chamillionaire isn't exactly the pillar of upper class.  Yes, in Houston $2 million dollars is a lot of money and can buy you a very large mansion, but in the Bay Area that amount of money doesn't take you very far.

A small two bedroom townhouse in the Palo Alto/ Los Altos area runs for about $800,000 to slightly over $1,000,000. $1,300,000 will not get you much.  Most of these people that the journalist pointed out were individuals who are at best in upper middle class trying to extend themselves to buy real estate in a good area of the Bay.  These are not wealthy individuals who are running away from their vacation or second home.

I honestly don't think the reporter who wrote this article has ever lived in the Bay Area.  Another example of someone trying to create drama out of nothing.

New York Times Article

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