Tuesday, September 16, 2008
Bewildering
This is what happens when markets are left unregulated. It's bewildering that subprime mortgage loans were even allowed to exist. And not just exist, but exist in such an irresponsible, disgustingly deceptive way. Now the walls come tumbling down, and the trickle down theory is exhibited at its finest. The consequences of Wall Street greed are not only affecting the perpetrators, they're trickling down to us.
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2 comments:
actually, a big part of the mortgage crisis (specifically, all those bad loans that went to people who couldn't really afford it - low income, etc.) is because the Dems pushed, about 10-12 years ago to make mortgage criteria less stringent and make housing available to their poor, unemployed, welfare constituents (yeah, that's hateful, i know).
now, people think that they have a RIGHT to own a house ....
only if they can afford it. otherwise, rent.
b, okay. You cannot tell me that supposed Dem legislation passed 10-12 years ago to make housing more available to low-income people is the primary reason for this crisis.
The problem didn't lie with people feeling that they have a RIGHT to own a house. Look, getting a house, in the end, comes down to whether you're going to have enough money to pay a monthly mortgage payment. And if a family is not financially able to do that, they should not be approved for a loan. But what happened? People were approved for loans that they had no business being approved for.
Why were they approved for them anyway? Because of greed. Because there was very little regulation in the loan sector, and people either failed to read the fine print (i.e. Your rate is going to adjust to an astronomical amount in a couple of years), or were simply sold a bill of goods (the deceptiveness I mentioned). Because nobody cared about the suckering of other people into getting loans that they wouldn't be able to pay back because the ones doing the suckering were being rewarded handsomely for doing so. Because there was nothing in place to discourage that type of behavior.
Wall Street didn't care until it came back to bite them, and our administration didn't care until the domino effect started messing our economy (and that of other countries whose economies are connected to ours)completely over.
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