Axeman |
10-11-2008 09:41 AM |
Quote:
Originally Posted by BlackCrayon
(Post 14881682)
I totally agree with that but these companies wanted these people. Its what made housing prices rise and what made their stock rise. All built on the premise that if they foreclosed, someone else would come in and fill the gap but suddenly gaps weren't being filled and they were losing money instead of gaining.
|
Which is partly true, everyone got drunk of the excess once it started. However the point is it wouldn't have started if it wasn't for Clinton (who I love) pushing to increase home ownerships and forcing the institutions to relax their rules and rates to get people in. Government intervention produced more buyers which inflated the market when it was built on an unstable premise.
Once it started the institutions said we have to do it might as well milk it. Ridiculous but what they did so they accepted as many as could since they knew by the time the mortgages were closed, they would have already packaged and sold that loan off to another company.
Blame goes everywhere on this, but my point is it was Government intervention in a system that it had no place being that sparked it. And while it was a noble cause to try and get everyone into a home they own it is a socialist attitude. There will always be the haves and the have nots in societies, and its impossible to try and have everyone the haves.
|