Why blame banks? We all know people who bought homes, cars, etc. they couldnt afford now we have to suck it up?

Those people lied about their income, used credit cards to furnish those big new homes, now the taxpayers who saved for years to make down payments and who live within their incomes are having to pay for the greed of others. No the banks' fault!Why blame banks? We all know people who bought homes, cars, etc. they couldnt afford now we have to suck it up?
that is a huge part of the problem and under clinton, banks were forced to loan them the money under the subprime lending act. when you realize that it is only 8% who are failing to pay their mortage and that 92% are doing what they promised and paying their mortage, why must all of us be footing the bill for those 8%. it doesn't make sense at all.





http://international-financial-affairs.s鈥?/a>





today, Geithner is suppose to annouce his plans, with no live media present, so much for transparency. i am willing to be it is just more pleas for money and more regualtions. that is always the dems' answer to any problem. soon the feds will regulate all business and that will be the end of the free market.





http://www.telegraph.co.uk/finance/finan鈥?/a>





i guess we will see what he has to say and hope i am wrong.





do you really want to become a welfare state even though the majority do what we were suppose to do and took care of ourselves? does the government really owe you education, health care, homes, cars etc.Why blame banks? We all know people who bought homes, cars, etc. they couldnt afford now we have to suck it up?
Your right except that these people didn't lie. They didn't report anything negative affecting borrowing. They weren't required to report income, etc. Banks were forced to make loans to these people against their better judgemnet by liberals in Washington. It's the same mentality controlling Washington presently. ';Let the tax payer foot the bill, they owe it to the welfare class.'; ';Reparations.'; People who elected Obama are the ones who benefitted from the loan fraud scam and are doing it for a second time thanks to Obama. It's a shame that we can't get a movement started where all tax payers refuse to pay. Carter, Clinton and Obama plus liberals in all 3 administrations. These are the culprits who have caused this demise. Never forget that regardless of the excuses and lies you hear from the left.
Personal responsibility is a big part of the problem. However lenders have an equal blame as well. They are MANY checks in the system to catch if someone is being deceptive on their income or credit, however lenders were in such a frenzy to make money and increase market share they often simply ignored performing those checks. Would YOU trust a stranger with your money without checking them out first? Most lenders never kept the mortgages themselves anyway, they bundleded them up and sold them as credit based securities. So even the orginal lenders often didn't care if the end user paid because they weren't on the hook after the intial loan.





One of the big issues is that we have lived in a credit based economy for the last 30 years. The concept of ';owning'; something has become nearly foriegn to us. This fueld the rediclous concept that housing prices would inflate forever. People with intrest only loans, or refinancing based not on payment of principle, but on inflated value of the home simply got out of control.





So yes, people are to blame for this (something washington and the media likes to ignore because they aren't in the habit of insulting their constituates and viewers) But also irresponsible lending had a large part as well. Its like drug addiction. You can blame both the addict and the pusher.
^^agree 100% with above statement.





It is infuriating that this is happening. It is not the banks fault, it is the politicians' fault who made it impossible for banks to turn down people for loans based on the area they wanted to live and the problems with these area's, a technique called ';red-lining';. It was bad policy that spurred this, and morons who took out loans they knew they could not afford and just wanted to flip houses to make money. It is too bad stupidity is not a crime in this country.
Ever wonder how they did that?


Have you ever applied for a bank loan?


I did, we had to show proof of income, several years tax returns, W2 forms. I couldn't have lied about my income.....unless the banker lied about it. Which is what they are finding, that in order to get the loans passed, the bankers erased the original amounts, and put in ones that would allow the loan to go through. Outright fraud. That's why you blame banks.


Most of the reasons that people can't afford those homes now is that they have lost their incomes. That can happen to anyone.


Or there were uninsured medical bills, that's the largest cause of bankruptcy in the US. That's fate.


If those people truly couldn't afford homes, they wouldn't have been paying on them for years before this. The rates on those mortgages were written so that in a few years they would soar to make mortgage payments two or three times what they started out. Lying to customers about the ability to re fi those now out of sight loans is also the fault of the bank, And not being able to rewrite those loans to accommodate a changing market, that's also the fault of the banks that sold bits of that paper in such a way that no one can make adjustments now.
Except, banks offered loans to people with shaky credit, income, and would be struggling to make payments. Banks are for business, for money, they'll just give them the loan and raise the interest making it that much harder. Most credit unions aren't in this hole because they are for the people, not the money. Have you noticed a bank at every corner? And credit unions are far a wide compared. Banks messed us up. I do have a bank account but would never take a loan out, other than student loan, from them because they don't really care about you, they care about the moeny.
You should have watched Dateline last night. It gave a complete view of all that are responsible for what happened. The politicians who signed this crap into law. The borrowers that knew they were giving fraudulent information and taking out far more then they could ever pay back, the realtors that convinced the borrowers that they could afford the more expensive house for only a few hundred dollars more then the home they could afford. And the banks that gave their employees incentives to lend, and then forcing the Underwriters to look the other way.





I purchased when all this was going on and was told by the lender that I approved for far more then I knew I could pay. Then the realtor was given my approval letter and consistently showed me homes that were far more then I could afford, but it was what I was approved for. Luckily I didn't let greed get tom me and I purchased a home that was affordable. I just wish that more has been as wise.
Oh, so now it is only the people who were a minority who bought things that they couldnt afford? Bull. Minorities generally bought homes they could afford, and it was the richer whites who bought the half million dollar homes that are on the market not selling now. So dont try to blame the whole economic crisis on minorities. And that was for that Robbie person
Amen!





It's also the fault of the politicians who wrote the laws forcing the banks to make these bad loans. ';Don't want to loan to some minority that has a bad credit rating? Well, then, you'll just lose your license to do business at all.';





I am sick and tired of paying for the mistakes of others.





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You are so right. Clinton, Barney Franks and Chris Dodd are the real culprits here. They PUSHED people into ';overspending'; for mortgages and autos. And now we ALL have to SUFFER? That's what so hard to swallow about the liberals. What the he** are they thinking anyway? And now Obama continues to spend, spend, spend, in order to cover the butts of these guys? Oh my God, I've had enough of that crap!
The banks signed the contracts, too. The people paid to create loans are supposed to be the smart ones. How hard is it to call a company and verify income?
The banks made many risky moves. This whole crisis also isn't solely due to bad loans by people.
Yup like this one lady who had bought a 39K home, then took out loans when the bubble was building to the tune of 145K - well **** ****** where the hell did you spend 100K, really?
I agree. Have seen far too many people living way beyond their means. We don't need that much stuff.