So who's to blame? The Banks or the Consumers?

[JoMoDo]

“If we tried to suppress the expansion of the subprime market, do you think that would have gone over very well with the Congress?” Greenspan said. “When it looked as though we were dealing with a major increase in home ownership, which is of unquestioned value to this society — would we have been able to do that? I doubt it.”

The FBI wrote Greenspan 3 different times from 1999-2004 that Mortgage Fraud was as epidemic proportions and will threaten the economy worse than the S&L crisis in the 80's.

When things are good and going up, no one wants to be the one to poop on the parade and pull the plug.

 

[Fucky McFuckerson]

The issue comes down to the flaw of human nature at it's most rudimentary element (in my opinion)-- which is greed.

Winner, winner chicken dinner.

 

[Timm]

, but so far you have posted no evidence to support your opinion or your claim that it was Bill Clinton's Community Reinvestment Act (as you previously stated).

c-span has so much gold

 

[Timm]

Winner, winner chicken dinner.

and yes i agree with this

 

[Timm]

Laissez Faire baby

 

[BENNY_BLANCO1]

So is it the janitors fault for buying something deep down he knew he couldnt afford, or was it the Banks fault for meeting the demand?

Speak on it. Yall already know my opinion.

I would think it would be everyone's fault who contributed to the problem.

Republicans and Democrats both had their reasons for passing the legislation which allowed the banks to have fewer requirements, and less regulation.

Republicans wanted less regulations on the banks so more business could be done.
Democrats wanted poor people to be able to buy homes.

The Banks wanted to make even more money and if they lose money, the govt will bail them out since we're dependent on them.

The people want something for nothing, or wanted to get rich the quick and easy way, not seeing the bigger picture or the potential repercussions of their actions on the whole of the country.

So they passed that shit, and created the housing crisis.

 

[MrDiamondFDC]

People that got loans they couldn't afford caused this mess and the people that are actually successful have to pay for the shit.

 

[JoMoDo]

^^^
Don't forget the banks and investors who extended financing to people whom they knew could not afford the homes (i.e. no income, no asset, no credit, no downpayment/equity invested in the property)

Or the Bush Administration for pushing the importance of home ownership.

Or the loan officers pushing loan products to avg. Joe's that only sophisticated investors should utilize. and realtors and appraisers acting crooked and jacking up the price of homes more than they were really worth.

Or fake escrow companies working with fraud LO's, Realtors, and Appraisers to close on properties that did not really exist.


Interesting fact-- Know the number one reason for foreclosure during boom periods? Health Care expenses.

Also, the 'successful' people pay a marginal cost compared to the rest of the population...

 

[MrDiamondFDC]

The government needs to stay the fuck out of personal banking.

 

[JoMoDo]

Some could argue (myself included) that they stayed too far out as a result of deregulation and lack of enforcement, thus we are faced with the current situation today...