

How a Warren Buffett empire preys on the poor - sheltgor
http://www.seattletimes.com/business/real-estate/the-mobile-home-trap-how-a-warren-buffett-empire-preys-on-the-poor/

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paulhauggis
"Billionaire philanthropist Warren Buffett controls a mobile-home empire that
promises low-income borrowers affordable houses. But all too often, it traps
those owners in high-interest loans and rapidly depreciating homes."

How is this a trap? It allows low-income borrowers, who are high risk and have
little income, access to something they wouldn't normally have: a home. Yes,
it may depreciate, but it's not meant to be an investment..it's meant to
provide a roof over someone's head.

I thought we were supposed to be getting rid of overly negative comments on
HN. This article is written from a biased and overly negative perspective.

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PhantomGremlin
You're misrepresenting the article. It gives multiple, clear, specific
examples of the "trap".

Buffett's mobile-home empire engages in typical predatory practices, taking
advantage of ignorant poor people. For example:

    
    
       But the closing documents he set before them
       held a surprise: The promised 7 percent interest
       rate was now 12.5 percent, with monthly payments
       of $1,100, up from $700.
    

Gotta hand it to Warren, he's got great PR people working for him. He
cultivates an image of a folksy, down-to-earth elder statesman. He advocates
feel-good social policies such as having the rich pay more taxes. He claims he
runs his companies for the long term. But when push comes to shove, he has no
qualms about making money from the "little people".

