What I mean by this last is *real values for living life on this earth*. In one way it’s the most difficult of the six points to achieve (and in another it’s the easiest: all we have to do is encourage youngsters to think), yet it is by far the most important. The first four or five points are necessary, but not sufficient. The only real antidote to the bad ideas that so many young South Aucklanders have imbibed with their welfare-mother’s milk –ideas that are killing them and their neighbours — is the better ideas that will show them their true potential.
The US sub-prime mortgage fiasco resulted from banks and brokers lending big sums of money to low-income families wanting to purchase their own homes. No problems so far. However this was an untapped market promising big returns for investors and as it gathered pace practices developed which preyed on the vulnerabilities of these families. The houses being purchased were frequently over-valued. One insider has reported that half were 10% overvalued, another quarter were up to 20% over and the rest were “so overvalued they defied all logic”.
People were frequently loaned 95% of the value of the property so when they signed the mortgage papers they immediately lost the equity they used for their deposit. They were duped by the brokers, the banks and the agencies who approved the deals and who realised many of these families wouldn’t have a hope of paying the mortgage. This rapidly became a professional loan shark operation on a gigantic scale.