I saw the Big Short twice. Once in a theater and once on vacation because a friend had a loaner. I loved the film. It showed the story of the collapse of the housing market brought on by mortgages for all. The film would be completely entertaining if it wasn’t true. We all grimaced and certainly hoped lessons had been learned. Nobody in the banking industry went to jail for what happened. Remember the saying “too big to fail” well that summed up the film.
I invested in a company called Tactile Finance because mortgages are hard to understand and she was simplifying it for consumers (and lenders). It gives everyone a clear understanding of what they are purchasing (borrowing). It is there to help everyone make smart solid financial decisions. After watching the film you realize that the people who were selling the mortgages didn’t quite understand them either.
I was watching the Super Bowl and saw the ad from Quicken Loans. Quite frankly the ad scared the hell out of me. It was about how easy it is to get a mortgage on a mobile device. Getting a mortgage could be as simple as pushing a button and by borrowing that money you could buy a house, buy a couch, buy a washing machine and in turn that spending would be good for the economy.
How soon we forget. The 2007 mortgage collapse brought the entire world into a financial crisis. The message from Quicken was borrowing money should be a casual thing. No biggie. We give it to you, you buy and then you pay it off. It works for all! Responsible debt is good for all but based on the recent mess we have pulled out of you would hope that people take loans very seriously. Permanent IOU’s don’t work for bankers and they shouldn’t be as easy as a click. It should be very tactile.