Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Big government, along with greedy bankers and uninformed, uneducated borrowers has caused the problem. At the root of it all, though, is intrusive, cradle to grave government. It's the Fed
Last edited by Electron; 03-13-2008 at 06:57 AM..
Reason: link repair
Big government, along with greedy bankers and uninformed, uneducated borrowers has caused the problem. At the root of it all, though, is intrusive, cradle to grave government. It's the Fed
Yep. The Federal Reserve is at the heart of this mess. With the banks eager to turn a profit and cheap cash at their disposal. People will buy nearly anything you sell them even if they can't afford it.
Yep. The Federal Reserve is at the heart of this mess. With the banks eager to turn a profit and cheap cash at their disposal. People will buy nearly anything you sell them even if they can't afford it.
Hmmm...I guess "Caveat Emptor" is a nebulous concept to the legions of brain-dead sheep eager to buy anything. Must be the gun put up to their collective heads.
Blame runs deep and it is to all parties. In Oregon & Washington there was issues with collusion regarding pricing of houses by realtors, and other untruthful real estate practices, quick buck lending practices, people's dishonesty in obtaining morgtages... However, the poster who started this thread does bring up an interesting point. Should there have been government oversight? And if so, where? First, I would think on a state level. Here in the Pacific Northwest, it was very obvious things were all screwed up. But nothing was done. Warning signs of a bursting bubble were everywhere. Next, I would think the feds would have some sort of congressional oversight or otherwise. This was a 4-star mess, it was eveident and none of the players involved (including those seeking morgtages) did anything about it. I think we are all to blame on this one.
Yes, why was this allowed? In 2004, I knew something was wrong in the real estate market. I had read that certain lenders were going after the "cash only/no credit rating" customers, meaning illegal immigrants. Why were lenders allowed to do this? Why do we allow illegal immigrants to purchase property?
Then the condo above mine sold for $350K (same as mine, but I paid $105K years before) and in moved a family of illegal immigrants. I knew what they paid, but it didn't add up. Nice people (didn't speak English) but the father was a laborer, the mother stayed home. They had one junker car and no furniture, then they moved a second family of renters into the 2nd bedroom. There was absolutely no way they could have afforded the payments on a traditional mortgage! It just didn't add up. And after talking to them a bit, I realized they were completely ignorant of the real estate market and couldn't understand why I had paid so much less for my condo with the same floorplan.
Fast forward to 2008 - their condo was foreclosed. I saw it coming, cashed out in 2005 and still hold the record high selling price for a 2 bdr. condo in the complex at $402K and moved to a new city where I took all that equity and put over 80% down on a new house. So far my new house has gained value, so I guess I'm a winner in the situation - but that's probably not true for most people.
It is the lenders;government putting pressure to give loans to people who shouldn't have qualified and people that are financially ilresponsible.Also a home market that became another stock market in that the values ran up way to fast and caused a steamroller effect in many markets. Now those markets will suffer for years to come from a excess of home but in the end it will bring down prices.In the end it was speculation that the housng bubble would kjeep going up. there are always loserd in this kind of thing.
Hmmm...I guess "Caveat Emptor" is a nebulous concept to the legions of brain-dead sheep eager to buy anything. Must be the gun put up to their collective heads.
Everyone is at fault here. The Fed for allowing the influx of cash. The banks for handing out loans to people who couldn't repay them and then packaging for resell to institutions that didn't research what they were buying. The people who took the loans without understanding or caring what they were getting. It's called a bubble for a reason. Eventually they all go bust.
The Fed for allowing the influx of cash. The banks for handing out loans to people who couldn't repay them and then packaging for resell to institutions that didn't research what they were buying. The people who took the loans without understanding or caring what they were getting. It's called a bubble for a reason. Eventually they all go bust.
Those wanting to buy a home should deploy common sense. Its not like buying a tv or even a car. Its most likely the biggest purchase someone will ever make. I would think that would require a bit of financial reflection or at least utilizing the hundreds of mortgage calculators on the web.
Yes banks should not offer spurious loans. But its not like they put a gun up to these folks' heads. People need to take responsibility.
If somebody offers to sell you the Brooklyn Bridge and you say yes, something bigger than overgenerous banks is wrong.
It is the lenders;government putting pressure to give loans to people who shouldn't have qualified and people that are financially ilresponsible.Also a home market that became another stock market in that the values ran up way to fast and caused a steamroller effect in many markets. Now those markets will suffer for years to come from a excess of home but in the end it will bring down prices.In the end it was speculation that the housng bubble would kjeep going up. there are always loserd in this kind of thing.
Please tell me how the lenders, or the government put pressure on people to take out loans that they couldnt afford. This should give me a good laugh.
Stupid Americans for taking on those ridiculous loans. But then stupid banks for approving those loans.
dumb rock > Americans > banks = we all fail
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
