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They didn't. Countrywide was driven purely by greed. They found a way to lend to people that otherwise couldn't afford it.
And whoever doubts that predatory lending exists isn't touch with reality. Is it so hard to believe that one company would do anything in its power to make money hand over first even if it weren't the most ethical thing to do? Ever heard of payday advance companies? Those guys charge ridiculous interest rates and for the most part, they got away with it. How about credit card companies that jack up your rate from 10% to 30% because an unrelated creditor received a payment five days late even though you had perfect credit with them?
Nonsense. You are saying greed drove banks to lend money to people who they knew couldn't afford to pay them back. LOLS.
Generally speaking, lending money to people who can't pay you back is a good way to become poor.
Please tell me how loaning money to people you know can't pay you is motivated by greed? Sounds more like charity to me.
And people that borrow from payday advance companies and credit card companies do so of their own free will. It is a completely voluntary action. Same with mortgages. No matter how much you think it is unfair the person borrowing the money thinks the rates are acceptable. Or they would not borrow it.
The entire premise of "predatory lending" is that people are forcing others to borrow money. Which is impossible. It also implies that people are loaning money to people who can't pay them back. That's not grred. It's the opposite of greed. It's charity.
Anyone that thinks there is such a thing as predatory lending is not in touch with reality.
Last edited by OhioIstheBest; 08-12-2010 at 03:05 AM..
How does the Fed FORCE a bank to loan money ?
How did the Fed force Countrywide to make the loans they did ?
It's called the Community Reinvestment Act. During the Carter years a bunch of retarded liberals got together and decided enough minorities didn't own homes. They forced banks to start making loans that the banks knew they were going to lose money on.
Instead of just letting banks loan an appropriate amount of money to people the feds got involved. This helped to raise the cost of homes which led to the economic collapse.
Was it a recession or a depression? How did you arrive at the definition? The article you wrote it clearly ill-written (or ill-conceived) with lack of consistency on usage of the terms.
The correction was depression styled, and Wiki is far from the only source that talks about the 1920 depression. The fact that it was short lived is inconsequential in comparing it to 1929 because vastly different policies with addressing it were implemented.
What I read in this was LOAN.... meaning it isnt a gift , just a means to get back on their feet without losing their home. What you would prefer them lose their home?
I think the banks should have been stopped in their tracks and converted all those adjustable mortgages into market interest fixed loans. that would have stopped the housing collapse. it would have meant the banks would have only made 5% on their money vs losing billions... hmmm seems there was a better way.
The argument I made doesn't require me to know you. I do know someone who lived through the great depression. Does her opinion on the issue count?
You too? My grandfather lived through it as well, was born on a share croppers farm, left home to go support himself at age 13, owned his first pair of shoes at 15, has an 8th grade education, served in world war 2 at age 17 and was able to become a very successful contractor. He thinks people are soft, who do not take responsibility for themselves and have become too expectant of others to take care of them. I guess his opinion means nothing right?
Go ahead, make excuses for those of us who have struggled and succeed. Make excuses about how its different for us, that somehow we just don't understand peoples plight.
My wife lost her job not too long ago. Rather than take unemployment, she took a pay cut and went back to working again within one week and continued to look for better jobs.
We are not better than anyone, if hard times hit, we will dig ditches, clean toilets, and do any job that allows us to continue to support ourselves.
People who understand responsibility will get rid of everything to continue to retain their independence and survive on their own. It isn't easy and you may take several steps back from where you once were, but doing so will allow people to get back on their feet again.
Your solutions encourage mediocrity, breed lethargy, and promote dependence.
Not directly mind you..but $3 billion is being allocated to states for homeowners.
To qualify..be out of work, be a homeowner and be at least 3 months behind on your mortgage (definition of a bad risk borrower ?)
Also, they have to have a reasonable likelihood of resuming their mortgage payments in the next two years.
Not directly mind you..but $3 billion is being allocated to states for homeowners.
To qualify..be out of work, be a homeowner and be at least 3 months behind on your mortgage (definition of a bad risk borrower ?)
Also, they have to have a reasonable likelihood of resuming their mortgage payments in the next two years.
Most of the defaulting loans were not made by Banks. They were made by "mortgage companies" that instantly sold the mortgages into the stock market. The "Mortgage Companies" were paid on commission for originating the mortgage and never had to consider if the mortgage could be paid back. These companies were the basis of what became the biggest Ponzi scheme in history.
I am tired of hearing about how some Right and Proper People think everyone should suffer if they made a poor decision while being encouraged to do so by the businesses that would instantly profit from the transaction. I believe it IS the JOB of government to protect people from the avaricious stock manipulators and crooked money center banks. I also think the 50 billion should be taxed from the companies that benefitted from the fraud and not come from borrowing or the general tax funds.
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But you and I both know the bank would foreclose in 2 months! Just because they could.
