Why is this allowed to occur? (Phoenix: mortgage, loans, how much)

[acrylic]

The Valley should pull a Detroit and destroy some foreclosed homes.

But, chances are that won't happen, so let's just keep building outward and outward until Tucson becomes just another suburb.

[algia]

Not just in the Valley but throughout Florida and California too.....That was a great idea.....

Originally Posted by acrylic

The Valley should pull a Detroit and destroy some foreclosed homes.

But, chances are that won't happen, so let's just keep building outward and outward until Tucson becomes just another suburb.

[Zathras]

Originally Posted by algia

No, the Gov didn't get us in this mess...GREEDY builders/Realtors and Lenders is what did this...

I disagree. That's way too simplistic of a view of what happened. Nothing in our society happens in a vacuum.

When you talk about builders, realtors, and lenders, you're talking about a few million of your fellow citizens, who are no more 'greedy' than any other collective group of a few million people. People are in business to make money. People go to work to make money. Doesn't matter what the business is, you're making money,and you want to make as much as you're allowed to without breaking any laws.

In the late 90's the Fed govt required lenders to increase their ratio of their loan portfolios to depressed areas, and Fannie Mae was forced to ease credit requirements in order to do that. In a nutshell, the govt was telling the lenders to start loaning more money to people who wouldn't otherwise qualify- or wouldn't qualify for as much. That began a long gradual buildup of risky mortgages over most of the next decade. So, eventually something had to give and the housing bubble burst when too many loans went tango uniform.

Now, the people in the government didn't do this because they're evil or bad. They were doing something they thought would help the less fortunate people own a home. A very noble thought. But, the unintended side effect was that it started the eventual housing balloon.

Beware of any segment in the economy that balloons- because it will eventually correct itself. Dot Coms in the 90's- BOOM. Oil in 2008-BOOM. Housing in the mid-2000's BOOM. The difference was, the oil and dot-com busts, while having a ripple effect through our society, didn't touch everyone in a big way. The housing bust has caused a huge hit to the economy, because it affects so many people in such a major way.

The builders & lenders may have added the fuel, but the government lit the match. To not acknowledge this and to try to assign the blame to 'greedy builders and bankers' is to ignore the subtleties of the issue. The government is filled with your fellow citizens as well, and they are just as capable of making mistakes or exhibiting greed as their counterparts in the private sector.

[jimj]

Originally Posted by Zathras

I disagree. That's way too simplistic of a view of what happened. Nothing in our society happens in a vacuum.

When you talk about builders, realtors, and lenders, you're talking about a few million of your fellow citizens, who are no more 'greedy' than any other collective group of a few million people. People are in business to make money. People go to work to make money. Doesn't matter what the business is, you're making money,and you want to make as much as you're allowed to without breaking any laws.

In the late 90's the Fed govt required lenders to increase their ratio of their loan portfolios to depressed areas, and Fannie Mae was forced to ease credit requirements in order to do that. In a nutshell, the govt was telling the lenders to start loaning more money to people who wouldn't otherwise qualify- or wouldn't qualify for as much. That began a long gradual buildup of risky mortgages over most of the next decade. So, eventually something had to give and the housing bubble burst when too many loans went tango uniform.

Now, the people in the government didn't do this because they're evil or bad. They were doing something they thought would help the less fortunate people own a home. A very noble thought. But, the unintended side effect was that it started the eventual housing balloon.

Beware of any segment in the economy that balloons- because it will eventually correct itself. Dot Coms in the 90's- BOOM. Oil in 2008-BOOM. Housing in the mid-2000's BOOM. The difference was, the oil and dot-com busts, while having a ripple effect through our society, didn't touch everyone in a big way. The housing bust has caused a huge hit to the economy, because it affects so many people in such a major way.

The builders & lenders may have added the fuel, but the government lit the match. To not acknowledge this and to try to assign the blame to 'greedy builders and bankers' is to ignore the subtleties of the issue. The government is filled with your fellow citizens as well, and they are just as capable of making mistakes or exhibiting greed as their counterparts in the private sector.

I agree! The one thing some forget is lending standards are regulated to some degree either by common sense,market or government. I can't believe any reputable bank would've willingly made loans that they truely new the odds of repayment were zilch or allowed 110% loans etc. The key word is "willingly".
As for not thinking of the consequences, I don't think they really cared that much about that. They wanted to show how "compassionate" they were (read buy votes) so It's the old kick the can down the road for someone else to deal with thing but unfortunately for everyone the can stopped rolling a heck of alot sooner than anyone thought!

[algia]

If everyone wants the Gov out so bad, then why are we still having a Gov?? that is a ridiculous idea...the Gov has its purpose & these days especially it needs to get out of other ppl's countries and focus on our problems: education, economy, health care which is the joke of the universe....etc

You guys complain about "socialists" yet, they have they're back covered by unions which don't allow the Gov or other private companies to take advantage of the workers....have you seen what happens to public transportation in Paris (France) when someone wants to take a shot at their rights? they strike and DEFEND THEIR RIGHTS.........here, in this famous "capitalism", the "greedy" take shots at normal people every day to see how much they can get away with and in the end hurt the average ppl and the average people have NO SUPPORT and HELP from anyone!

It is ONE thing to want to make money as a private company, and a whole other to take advantage of the employees that make YOU all that money.

Yeah, to answer someone else earlier in the thread...whom ever decided to allow loans to ppl who could NOT afford them was a GREEDY IDIOT after a quick get rich scheme......because IF that person had the best interest in mind to HELP someone that otherwise wasn't able to own a home, there could have been other ways to accomplish that without destroying the economy and people's credit WHEN, this country is all based on CREDIT! whomever was that genius, he/she was an idiot that didn't care about the consequences of their actions. Should be JAILED. Now you have TWICE the people on welfare, and an inventory that will take years to sell because the condition that was left in and proximity to anything!! Yay, That's SMART INDEED!

[rjrcm]

Originally Posted by algia

...Yeah, to answer someone else earlier in the thread...whom ever decided to allow loans to ppl who could NOT afford them was a GREEDY IDIOT after a quick get rich scheme......because IF that person had the best interest in mind to HELP someone that otherwise wasn't able to own a home, there could have been other ways to accomplish that without destroying the economy and people's credit WHEN, this country is all based on CREDIT! whomever was that genius, he/she was an idiot that didn't care about the consequences of their actions. Should be JAILED. ...

Yeah, let's find the ONE person that caused this problem and lock him/her up . I think you should reread Zathras' post.

[algia]

Here, I'll make that plural: "The IDIOTS".....

Because I can't call them something else when they enabled people who CANNOT AFFORD to buy a house, buy one, AND didn't even bother to read to them or explain to them what will happen in a few years when the tsunami of interest will strike them right out of that house!



Sorry, but "I" couldn't do this to someone else if it meant immediate monetary gain for me! It's not ETHICAL!

Originally Posted by rjrcm

Yeah, let's find the ONE person that caused this problem and lock him/her up . I think you should reread Zathras' post.

[Mike1306]

Originally Posted by algia

No, the Gov didn't get us in this mess...GREEDY builders/Realtors and Lenders is what did this...

Realtors and lenders did their job.
No one was forced to buy.
The blaming of realtors comes from many who do not want to accept their personal responsibility or those who do not understand what free will is.

[joninaz]

Many of the big builders are public companies which need to continually please the stock market/investors looking for continual growth. What's farked is that these companies are therefore pushed to make decisions that make them look like they are growing, rather than being conservative based on market factors. It makes no sense to be developing new builds in PHX right now, but if you want to appease the market, you have to show growth. It's part of the reason the economy is so messed up... people used to buy a stock and keep it for months/years. Now it's a game where stocks are held only for days/minutes... the bet is on the swings, up or down.

[TurcoLoco]

Originally Posted by algia

Yeah, to answer someone else earlier in the thread...whom ever decided to allow loans to ppl who could NOT afford them was a GREEDY IDIOT after a quick get rich scheme......

Here is a hint to your question, there are 2 of them and both of their first names start with the letter F and last names start with letter M.