đź“° Auto News Getrag US Files For Bankruptcy
- Thread starter Mook
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Ya know, first congress mandates loans for anyone who wanted a home. The banking industry was completely against securing 110%+ for people who had no proof they could pay it back. But the 'good ol' US govt.' (specifically one Illinois senator) sued the banking industry and somehow won. Millions of unsecured loans were given out like candy-which brought us to today. Now there is a huge credit crunch, so we elect one of the main idiots to be president? We did it to ourselves through over regulation!
BullSHIT!!...you are going to sit there and tell me the government...who can't even balance a budget...knows better than the Chief Lending Officer at AIG, Bob Lutz or J.P. Morgan (!?!) when it comes to their game? The government is why we have 98% of the problems we are experiencing today. If they would quit trying to justify their existence by adding law upon stupid law, maybe we could get out of this mess before the $ crashes and a loaf of bread costs $20!Fixed
this is wrong (or dishonest if you know better) - the reason so many bad loans are out there is not because of those laws. most of the places bad loans originated from weren't subject to those mandates, and of the ones that were granted through those mandates, they are performing better than the rest of subprime loans. the biggest entity in government to blame is the federal reserve.
Fixed
i don't think this is true either, only liberal economists even bring up the one major act of deregulation that took place (glass steagall, under clinton) and i would also note that the republicans tried to get more regulation in for fannie (too late) - i think this regulation was more as a response to shady/criminal behavior rather than around how GSEs like fannie/freddie distort the market.
this bubble was made possible by a tax environment that encouraged and rewarded speculation, consumer greed and lender greed. the biggest culprit was the federal reserve with a loose money policy. if we had a truly free market, the bubble would not have happened because the market regulates itself. money would never have been this cheap to begin with and we would have never hit this extreme. it is socialist entities that need the regulation, so i really don't mind having more for something like fannie mae, where is is privatized profits and socialized losses. some things i'm not sure if anybody is smart enough now (or ever) to regulate though, like the federal reserve and its behavior. IMO though i'm not so sure the federal reserve should exist!
^^^While you guys are right, I feel that there should have been more prevention of these Adjustable rate loans, thats what killed everyone's budget, your house payment increasing drastically, sometimes even doubling after 5 or 7 years.....This kind of loan is a scam and everyone who got them obviously didn't ream the small print, I feel this should have been and should be illegal.... but this kind of load wasn't really monitored by the Fed gov't.... But then again, we can't expect them to do everything for us......I just wish this country was smarter as a whole, that would make situations like this smaller and less likely
i had an ARM, i used it just fine. so did several friends of mine. adjustable rate loans are fine. stupid people who think they are going to flip their house or it would just keep going up in value are not. or people that didn't think of budget after possible increase in ARM percentage. i'm sure some people will claim now that they didn't know, but at the time i'm quite certain they were told this.
another problem we have now is how young people have grown up in this system (myself included) - they have never really seen a rainy day. so why save for one? they haven't known anything but easy credit and easy money. they practically see credit cards and credit as an entitlement. and oh sure, the government should make x and y entitlements too. i think everybody is going to be getting an education over the next few years though.
another problem we have now is how young people have grown up in this system (myself included) - they have never really seen a rainy day. so why save for one? they haven't known anything but easy credit and easy money. they practically see credit cards and credit as an entitlement. and oh sure, the government should make x and y entitlements too. i think everybody is going to be getting an education over the next few years though.
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