J.P Morgan Chase Bank is trying to lower its’ interest rates on its loans so consumers can afford to repay the loans. Banks can’t afford their loans to be defaulted on, they can’t afford to seize houses and properties and foreclose them for a small percentage of it market value. People aren’t saving and banks aren’t loaning money. Lower interest rates seem great now and the lengthening of terms seems even better, but, it’s just as hard to acquire a loan now and almost impossible to refinance your house at the lower interest rates that are now being offered. Portfolios with investments are going down the drain as well. From colleges, to big business, to individual consumers, no matter how big or small an investor you are you should review your portfolio to see how quick you can liquidate your assets. Students are having a harder time taking out student loans at a decent interest rate, or they are being forced to take out private loans that accrue interest while you are in school. Schools have less funding, students have less money to pay for school and therefore more students aren’t applying to college or finishing college. Consumers are borrowing money from their credit cards to pay for the mortgages, student loans, and or any other bills/loans that they may have, which makes the interest rate go sky high and the minimum payments increase. Overall, loans have gone from helping middle class and low income individuals and families whether it be a loan for a house, car or school, to ruining the life’s of people by seizing assets, forcing people into bankruptcy and putting a halt on loaning people money who actually need it.
References:
The Wall Street Journal
J.P. Morgan Expands Loan Effort by Robin Sidel
Rates Fall, but Refinancings Are Limited by James R. Hagerty & Ruth Simon
Smart Money Takes a Dive on Alternative Assets by Jason Zweig
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