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Originally Posted by Danzig
but not everyone has the wherewithal to buy a home-and i think the govt really put their weight behind making home ownership available to those who just can't afford it. and may never be able to afford it. when all the defaults began because of ARM's going up (and everyone who had one had to expect that to happen!) it flooded the market, driving down housing values because of too much supply, not enough demand. so then you had folks who had gotten equity lines and second mortgages who suddenly realized their investment wasn't much of one-so they defaulted as well...so everything spirals down, and here we are.
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The Govt didn't approve the loans and the Govt didn't turn people into idiots applying for a loan without sufficient income. In my mind there are three groups at fault...and that's pretty much a consensus from reading above posts..
1) Citizens/selfish suck holes/idiots who have no self responsibility and applied for credit they had no right to get.
2) The selfish suck hole banks and instistutions that marketed these loans and then sold them deceptivally to selfish/suck hole banks who didn't do their research.
3) Regulators..aka, yes...the "Government" who didn't nip this in the bud.
It was a perfect storm..where we are today doesn't happen if any one of the three doesn't exist.