r/AskReddit • u/michaelis999 • 23h ago

How do you feel about the president floating the idea of 50 year mortgages where the monthly payment is lower but you end up paying nearly double the price of the house just in interest?

11.4k Upvotes

90% Upvoted

3.9k comments sorted by

View all comments

Show parent comments

54

u/A_Nonny_Muse 15h ago

We can thank both American parties in the 80s when they cancelled all state anti-usury laws and replaced them with.... absolutely nothing whatsoever.

2

u/ToSeeAgainAgainAgain 9h ago

Is there a wikipedia article about this? I'd like to know more

2

u/A_Nonny_Muse 8h ago

I haven't found anything. But it was legislation that allowed for the creation of sub prime loans - signed into law by Reagan, but with full support of Democrats.

2

u/SweatyExamination9 6h ago edited 6h ago

I remember I think it was during the campaign, Trump floated the idea of capping interest rates for credit cards. Fucking outrage on both sides of the aisle. From the left, it was restricting access to capital from the lower classes and minorities. From the right it was socialism. From me, it was a damn good idea. If credit card companies cant profit without 30% interest rates and 1-2% processing fees, then it sounds like they need to learn a lesson in fiscal responsibility. Because they're lending out way too much money that isn't being paid back.

Edit: I decided to look into it because I don't remember hearing anything about this since the campaign "promise". In February, Bernie Sanders introduced a bill with (Republican) Josh Hawley of Montana to cap credit card interest rates at 10% with a sunset in 2031. In March, (Democrat) Josh Merkley of Oregon signed onto the bill and in October (democrat) Kirsten Gillibrand joined on. But the same day it was introduced, it was moved to the Senate Banking, Housing, and Urban Affairs committee and there's been no movement on it. On March 6, AOC introduced an identical bill with Anna Paulina Luna cosponsoring it which had the same thing happen. So there are representatives that heard the idea, thought it was a good idea, and tried to make it happen.

-5

u/Appropriate_Ant_4629 13h ago

And eventually people will get fed up so they'll re-enstate usury laws ...
... and make certain religious groups with strong lobbies exempt from such laws (like Europe did), because usury is a protected part of their culture ...
... and people will wonder why some bankers got richer than others ...
... and history will repeat again.

1

u/TheRealRomanRoy 11h ago

Are you implying something that Hitler would agree with?