Subprime, Subprime, Subprime...Lenders should have known. More Regulation. Tighter Controls. These Banks were corrpt, unethical..etc. They ruined the economy.
Fuck Off.
Yes, we played a part.
Yes, Hindsight it 20/20
But where are the calls for the Federal Reserve to be overhauled? They played just as critical of a factor for the housing breakdown then any corrupt lender.
Ironically we are turning to the Fed who got us into this mess in the first place to fix it...???? WTF
See the Fed kept rates at historic lows. This created a housing boom. Condos were created at break neck speed. House built at an unprecedented level. Capital was so cheap it everyone had to get some.
Soon there was excess supply... which causes prices to drop. Prices lenders counted on to keep rising.
Interest was artificially capped by the Fed below the market rate to drive growth. When something is artificially priced low someone who could not afford it otherwise gets the chance to buy it.
Even with all the "exotic" mortgage products on the market if the rate was not kept artificially low by the Fed many of the people who bought beyond their means could not have afforded the mortgage they took out and a large section of this would not have happened.
So when you are applauding the Feds moves on Wall street and George Bush for helping families stay in their homes remember you are applauding the people who helped get you in this mess in the first place.
If they are taking credit for fixing the problem....they should also acknowledge their role in creating it....
5 comments:
It was the American Dream -- People wanting to buy and own their own homes....
not denying the feds involvement, but I think the biggest culprits are those companies that wrangled low-income people into the housing market with promises of low interest because of this wonderful thing called and ARM, and houses people couldn't afford in the first place, people who have sporadic employment histories and had little hope of keeping a job that would enable them to make payments.
My biggest worry is that we are starting the cycle over again. But I think the rate cuts are necessary to keep the housing market out a depression.
Part of the blame, a large part is also the gov. who for years has pressured mortgage companies, Fannie and Freddie to "enable" EVERYONE to buy a house which meant lowering standards.
The gov. better not bailout consumers because when does it end? Do they then save Student loans?
PERSOANL RESPONSIBILITY. I understand that a small % of consumers were "duped" but I would bet that most were white middle class looking to live above thier means in McMansions.
I couldn't agree with you more! I've heard about you through Kristi. Finally had time to come check it out.
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