Quote:
Originally Posted by secondcurve
It's not the Banks!!! It is the government. Please read the papers. The government started the housing crises by keeping rates artificially low and mandating that every stiff who could fog a mirror should own a home.
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Quote:
Originally Posted by Diver Vince
Exactly correct! The government started this entire debacle with red line zones which forced the banks to make loans to those with inadequate financial solvency under the guise of "fairness".
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Nobody "forced" the banks to do anything. The combination of things being allowed (not mandated) and the banks' own greed was the problem. The wall-street geniuses that came up with bonds based on sub-prime mortgages that masked the true risk of those instruments created the demand. The banks saw $$ in closing costs and fees, and selling those mortgages to the bond managers, and supplied that demand. Immediate profit, no long-term risk. What's not to like? After all, the banks had no downside to protect, they had that FDIC safety net!
Sorry...wall street and bank greed is behind this one, not a nonexistent government mandate.
If you can stomach the truth, listen to this:
http://www.thisamericanlife.org/radi...-pool-of-money
Oh, and when you're itching to point fingers on this one...remember what administration was in office at the time. Hint: not the current one.