There are plenty to blame for the crisis. The Fed's involvement has already been alluded to. There were also the banks wanting business, mortgage brokers wanting commissions,real estate brokers wanting sales and the buyer wanting to buy.
I know of numerous situations where the buyer had no business even thinking about supporting a mortgage. They borrowed privately to make a minimum down payment. They inflated their earnings and hid there debts. The real estate people, mortgage brokers, and banks chose to look too look the other way.
It was a run away train heading for disaster.
|