Discussion in 'Other Discussions' started by icegoat63, Sep 17, 2008.
Ouch yeah so thats a bad deal.
The housing problem began back with Carter in 1979, and was put on steroids by Clinton. We can blame both parties for this mess. Case and point why the Government needs to keep is fucking nose out of private enterprise.
Personally I think credit card companies and extended mortgage companies and banks are largely to blame.
Simply put, people who already have debt shouldn't be allowed to borrow more money, period. People who can't afford their mortgages shouldn't feel like victims. After all they signed the mortgage papers. If people would do shorter mortgages with a bigger down payment, or simply buy a smaller house and scale as their savings allow most people wouldn't be having problems with their house payments right now.
The single biggest reason for the economic downfall of late is the American mentality of buy now, pay later.
Don't spend what you don't have. That goes for the government too.
Well that and I cant vouch for the rest of the states but I personally have friends who thought they were making a killing a while back when they bought some of these track homes that popped up. They are my age.... not necessarily ready to make a commitment as big as a house just yet and they were taking 110% loans on houses.
I dunno who got to their head and convinced them that they should borrow more than what the house is worth, supposedly for furniture or whatever. But none the less. I do agree, way to much money going out and just not enough coming back in especially after all the foreclosures
The housing market issue is generally a liberal policy and a self inflicted wound by our government. The government back in Clinton’s time demanded that banks loan to unqualified people, to help “every American own a home”. This was actually Carters idea (law), but Clinton pushed it. Well these people began to default when inflation went up because they were trapped with adjustable rate mortgages. These are the same people in the inner cities on welfare, low paying jobs, living paycheck to paycheck. So a slight increase in their mortgage was enough to overdo it for these people. They lost their homes, and one thing led to another and the housing market went to shit because unqualified people kept defaulting left and right when their mortgages went up. Then the government turned around and blamed the banks and fined them and jacked taxes up as punishment… then people wonder why their interest’s rates rose even more. Then more, more houses were defaulted on and lost etc… The Government is solely at fault here, they created the problem, now they are trying to clean up the mess. Like I said, case and point why government needs to stay out of private enterprise.
I agree nearly 100% with this post. Although largely the Banks are the ones that over extented their Mortgage lending to individuals both are to blame.
Now I have sympathy for the family that signed their papers for their house and then their house loses 25% of its value and then their rates go up tripling their mortgage payment. The people hurt worst by this are the middle-class families who bought homes 5-10 years back.
The deregulation that led to the subprime mortgage crisis to affect large national banking and insurance institutions was part of the 1998 Gramm Act, passed by Senator Phil Gramm, who was until about three months ago McCain's top economic advisor.
Carter sure pushed home ownership, but the reason mortgages became a key investment item (and why banks got loaded down with tens of billions of dollars of them), is due to Republcan deregulation- which removed most of the safeguards in the Class-Steagall act of the 1930's.
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