Castles In Vacuum

There is an idiom that was probably framed centuries ago, but was it said anticipating a cataclysmic disaster which was to occur way into the 21st century? The phrase “ don’t build castles in air “ was quoted by some one who had no idea of what sub prime loans could do to the entire economical chain of the world. But, it had greater relevance in the early stages of the millennium. Mortgages with bad credit have been instrumental in disrupting the entire eco- chain (economical chain) of the globe. The crisis was an after math of various factor’s lethal combination.
Buyer’s mortgaged property without waiting for the prices to slide; which dug a grave exactly to their body dimensions .It requires a lot of patience and wit to do things exactly opposite to your other counterparts. Being greedy when others are reluctant and waiting for the storm to abate instead of pressing the panic button are a few postulates which are imperative for an investor to make profit at a colossal level. However, none followed the right path. Every investor wanted a short cut which led to a ruinous consequences eventually leading to massive mayhem. People forgot the basic essence that a home was a place to live and enjoy rather than a place which would enhance your status of self esteem in the society. The troubling statistics annoy us even more as in the previous recession of the 20th century; the reason for the fall was because of first time buyers who invested when the market was at its peak of ductility. If this was not enough; this time 2 out of ten mortgages were for more than 5 times annual income of the borrower. This is where the predicament started and the doors for hell were opened for the borrower.
The lenders were an equal partner in crime. Initially, Lenders were skeptical in giving a deal for the self employed. However things changed with time and lending mortgages to people with terribly turbulent economic status was considered innovative actions. But all actions have effects and this action had adverse ones. Every business has its shares of ups and downs but the high mortgage levels made sure that the borrower culminated with bad credit history. The problem lies in the method in which borrowers are scrutinized. A source of the capital is a vital criterion in choosing your borrower. Unconventional sources of income must ring the alarm for lenders as the stability of those sources are bound to be tentative.
The crisis could be an appalling amalgamation of slip-ups by lender and borrower, but the phrase still holds good “don’t build castles in air “for the borrower. In fact the phrase has attained new dimensions this time round as a reason of the greed of the borrower. It would not be wrong if it is rephrased to “don’t build castles in vacuum”