by Sol Palha
Although gold dust is precious, when it gets in your eyes it obstructs your vision. – Hsi-Tang
Economists stated that main trigger for the financial crisis of 2008 was the issuance of mortgages that did not require down payments. The ease at which one could get mortgages in the past is what drove housing prices to unsustainable levels. Post-crisis all banks vowed to end the practice forever, or that is what they wanted everyone to believe. When the credit markets froze, we openly stated that the 1st sign that banks were getting ready to lower the bar again would come in the form of Zero percent balance transfer offers that had all but vanished after 2008. A few years after 2008, banks started to mail these offers out, and now everywhere you look you can find 0 % balance transfer offers ranging from 12 months to 18 months. The next step after that would be for banks to lower the 20% down payment required to something much lower. Currently, Bank of America and a few other banks are offering 3% down mortgages.