AIG is the company that insured those no down payment loans. Used to be, you had to put down 20% of the homes value to get a mortgage. When borrowing became easier,banks started selling "mortgage insurance" that the borrower paid until their home equity reached that 20% worth. AIG set themselves up to buy those mort. ins. policies to free up banks, getting banks out of insurance business. When home values began to drop, the buyers began to see they'd never get their insurance dropped plus their house payments rising cause of Adjustable Rate Mortgages, caused a meltdown of historic proportions.
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Today's Featured Article - New Life for an Old Allis - by Tyler Woods. My friend Jon, has an old '39 Allis Chalmers B. He thought it a marginal tractor that had long since served its time. She smoked terribly and never had much power but he couldn't afford another so he was limping along with what he had. Jon's Allis has a small front loader and though it doesn't carry much, it serves his needs. It was the hard starting and low power that made him think it was time to replace the old girl. Jon called me to help him discover why his tractor wouldn't start
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