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Just watch the show "Property Virgins" and you will see that the Mortgage lenders are not the only ones in this. In order for people to find the house that is out of their price range, they have to be shown it first.
The lady on the show constantly shows Property Virgins homes outside of their price range and tells them "don't look at the big number...look at the monthly payments". It's not all Realtors (mine was fantastic and I have used her twice and referred to my parents) but the blame can be spread around some more.
Phil Gramm: McCain’s “Econ Brain,” who called America “a nation of whiners” in a “mental recession,” former Senator Gramm was behind the Commodity Futures Modernization Act and the Gramm-Leach-Bliley Act. The former made legal “the mortgage swaps distancing the originator of the loan from the ultimate collector,” while the latter “destroyed the Depression-era barrier to the merger of stockbrokers, banks and insurance companies.” As The Nation wrote, “those two acts effectively ended significant regulation of the financial community.”
That's not really a big deal though. The secondary market (the folks who hold the loans) were still in charge of the quality of the loans themselves. They chose the loan to value ratios, debt to income ratios, etc. That effect was more specialized fields within the mortgage industry. (As a result, the people in the secondary market were much more likely to know that something bad was coming because they specialty was risk analysis... Which, FYI, everyone knew was too heavy for the last ten years.)
Seems the clinton admin and the banking lobbyists got the ball rolling.
Well you're finally getting close. But what you fail to offer up is that almost every Dem Senator voted against the repeal as did 25 percent of Dems in the House.
So the only opposition to the bill came from Democrats.
That's not really a big deal though. The secondary market (the folks who hold the loans) were still in charge of the quality of the loans themselves. They chose the loan to value ratios, debt to income ratios, etc. That effect was more specialized fields within the mortgage industry. (As a result, the people in the secondary market were much more likely to know that something bad was coming because they specialty was risk analysis... Which, FYI, everyone knew was too heavy for the last ten years.)
Well who was stupid enough to let them "choose" loan to value ratios???
Banks don't get to do that with their other loans?? Because they are regulated.
And since a government bailout was ALWAYS in the cards if something went wrong. Why do we both deregulate and at same time assume their risk???
Because that's the way the GOP game is played. Champion conservative talking points like "Deregulation" , and blame others when things go wrong.
How ironic it is that McCains' economic advisor, who is the likely the main culprit ( one could argue Alan Greenspan was the number one also) behind this financial crisis.
Yes, one could argue Greenspan being the main culprit... but the reality is that person would be one of the many moron's who were taken in by Wall Street's response to McCain and Greenspan resisting Bush's tax cuts.
What has happened in our financial industry couldn't have happened without deregulation but what happened can not be blamed upon the government.
Deregulation would never have been passed had anyone known that the industry would not self regulate.
Greed is what caused this failure and it goes from the banks, to the mortgage lenders, to the realtors, the inspectors... you could even blame Carlton Sheets.
The industry was granting loans that should not have been offered to people who were buying houses that they couldn't afford.
Who is to blame? The banks who gave money to people without doing their homework, ... IMHO.
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