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| Topic: Who's to Blame for Economic Crisis? | |
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Interesting take in Newsweek with the guilty according to factcheck.org:
* The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap. * Home buyers, who took advantage of easy credit to bid up the prices of homes excessively. * Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses. * Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes. * The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families. * Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates. * Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages. * Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral. * The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market. * An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic. * Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up. http://www.newsweek.com/id/161936/output/print |
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but most of all brokers like those at Countrywide Financial who blatantly and knowingly defrauded the system by misrepresenting the creditworthiness of applicants while reassuring them that they qualified for loans when they should not have qualified.
one cannot blame many low-credit consumers who were/are in general not capable of knowing whether they were really qualified or not. |
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gwj358 is to blame for it
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Yes, but one should be able to look at their income and all debts they have and realize whether or not they can afford the mortgage payment presented to them. When making a big purchase like that you need to educate yourself as well.
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Yes, but one should be able to look at their income and all debts they have and realize whether or not they can afford the mortgage payment presented to them. When making a big purchase like that you need to educate yourself as well. i agree but these consumers are poorly educated and easily hornswoggled by brokers who are only seeking a commission. When they are ready to defraud - then they can misrepresent the terms in great varieties of ways and in the end, a hopeful borrower who can't understand the elaborate documents just figures - "well - if i couldn't afford it they wouldn't be giving me the money - right?" in the beginning of course they can afford the payments... |
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One of the wisest sentiments I've ever heard was "Trees never grow into Heaven", followed closely by "When they say there's no end in sight and everything stops making sense? It's time to RUN to the exits."
Unfortunately, with this crisis, it looks like you can run, but you can't hide. -Kerry O. |
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Interesting take in Newsweek with the guilty according to factcheck.org: * The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap. * Home buyers, who took advantage of easy credit to bid up the prices of homes excessively. * Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses. * Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes. * The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families. * Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates. * Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages. * Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral. * The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market. * An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic. * Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up. http://www.newsweek.com/id/161936/output/print don't forget the real estate "flippers" that manipulated the market by spiraling home prices up in a stratospheric climb until the whole thing passed out for a lack of oxygen. If it weren't for that, none of the toys and designer clothes and exotic vacation destinations would have been realized by the avid and adept consumer with investment genius to match their skillsets as real estate magnates. They played but a minor role, huh? And the Federal Reserve Bank just whet their lips at the prospect of taking the market down just to buy on the dip in secret. HUH? Is wouldee high again? 
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Learner...who said we couldn't agree...
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ahhhhh...
banking on it. http://www.comcast.net/data/fan/html/popup.html?v=870787446 this is hilarious.  
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Interesting take in Newsweek with the guilty according to factcheck.org: * The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap. * Home buyers, who took advantage of easy credit to bid up the prices of homes excessively. * Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses. * Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes. * The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families. * Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates. * Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages. * Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral. * The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market. * An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic. * Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up. http://www.newsweek.com/id/161936/output/print 
Now, you just have to recognize how Obama and McCain, and their runningmates ignore these problems, and just add to it... |
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Interesting take in Newsweek with the guilty according to factcheck.org: * The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap. * Home buyers, who took advantage of easy credit to bid up the prices of homes excessively. * Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses. * Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes. * The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families. * Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates. * Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages. * Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral. * The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market. * An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic. * Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up. http://www.newsweek.com/id/161936/output/print |
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