Quote:
Originally Posted by nestle
I'd hate to be the black sheep in this thread but companies like Countrywide are assholes because they were giving out mortgages to high risk borrowers that can't really afford it in the first place not because they foreclose on property of a defaulted loan.
This subprime mess is a result of irresponsible lenders AND irresponsible borrowers.
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AND if you actually follow the trail you have none other than your politicians in DC to blame really....They were the ones making noise noise about "low income" not being able to buy houses.
Politicians were applying enormous pressure on lenders to make loans to people who simply didnt have the income to pay them back and lenders relented (remember the "community re-investment act?")
The Community Reinvestment Act lets politicians pressure lenders to lend to people they might not lend to otherwise -- and the same politicians are quick to cry "exploitation" when the interest charged to high-risk borrowers reflects that risk. The huge losses of sub-prime lenders, some of whom have gone bankrupt, demonstrate again the consequences of letting politicians try to micro-manage the economy. Yet with all the finger-pointing in the media and in government, seldom is a finger pointed at the politicians at local, state and national levels who have played a key role in setting up the conditions that led to financial disasters for individual home buyers and for those who lent to them.
So now you have Washington, yet again trying to slay a dragon of it's own creation. Think about that before you vote for either of the two clowns running for President.