Quote:
Originally Posted by wdmso
So americans approved their own loans ? More like they were mislead into adjustable APRs and when rates Blew up so did mortgage payments They could afford A but not B and C which I am sure they were told was never going to happen . And to able to own ones Home isn't that the American Dream.. and the Banks I am sure! used this desire to their advantage. it's easy to say they, the Homeowner should have read the fine Print hindsight is always 20/20 . But the banks knew they were approving loans they shouldn't have been issuing . because they were making Money they didn't care
Hedge funds, banks, and insurance companies caused the subprime mortgage crisis.
https://www.thebalance.com/what-caus...20in%20housing. |
"So americans approved their own loans ? "
Yes, Americans approved those loans by signing the contracts and agreeing to paying them back. Not one American, not one, was forced to sign those mortgages.
Obviously there was some shady practices by banks, who immediately sold those mortgages and therefore don't care if they eventually default.
My point was that Bush didn't do anything. If he had tried to pass a law saying that Americans can't buy more house than they could afford, people would have rightly gone berserk.
I'm not saying the GOP didn't do anything, they passed a law in the 1990s allowing banks to get into the business of fishy, mortgage backed investments, and Bill Clinton signed that law.
Both parties contributed, banks contributed, Wall Street contributed, and greedy/irresponsible homeowners contributed. But I remember the 2008 election. It was all framed as Bush's fault. If you didn't complain about that, don't complain if Biden gets blamed for gas prices and inflation.
What's good for the goose...
"And to able to own ones Home isn't that the American Dream"
Sure. Doesn't mean the way to do that, is to buy a house if you can only afford the interest payment on a variable mortgage.
"hindsight is always 20/20"
Not just hindsight, smart people saw that coming a mile away, it was a bubble begging to be burst. People were taking outrageous mortgages.
"But the banks knew they were approving loans they shouldn't have been issuing . because they were making Money they didn't care "
And many people knew they were taking out mortgages they could never hope to pay back, but they assumed housing prices would increase forever and they could just cash out the equity when mortgage payments increased. Stupid. You don't need to be a graduate of the Yale School of Economics to see what was coming.
"Hedge funds, banks, and insurance companies"
Also politicians of both parties, and the American people did it to themselves. Liberals hate the concept of individual responsibility.