Quote:
Originally Posted by donb9006
It IS greed Gracie, the banks knew they could make money ORIGINATING and then selling mortgages to investors. With the government they have in their pocket, they expanded the pool of homeowners to cover just about anyone. Remember the NINJA loans? (No Income No Job or Assets) "Their" government guaranteed the mortgages giving them a AAA rating and relieving the banks from responsibility for them. The government (Fed) is now spending $45 billion every month buying the worthless mortgages from the banks at 100 cents on the dollar. The banks win and "we" lose. The appearance of stupidity and ineptitude are just that...appearances. They KNOW what they're doing...oh how they know what they're doing...
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Oh. And why is it not "GREED" on the part of the home BUYER, who
covets a home he cannot afford and is priced $200,000 more than he really should be buying....does not have a down payment for....or has unsteady income, unstable job in a community whose city
government is going bankrupt???????
I've met several couples in the last few years who said they were absolutely shocked at the mortgage amounts the lenders "qualified" them for......and they were mature and disciplined enough to say "No....we cannot afford that...we'll get one for $200,000 LESS than the 'qualified' amount".
Of course the lenders and investors were greedy. But so were the short-sighted, greedy, or ignorant home
BUYERS who signed the mortgage papers without a gun to their head!
This shifting of personal responsibility onto the boogymen in banks and Wall St. is feeding a society of enablers and parasites. BOTH sides of the deals are responsible!