Quote:
Originally Posted by detbuch
So, in the end, who is the loser in this process? If the borrower can't make payments, he defaults, doesn't "lose" the home cause the "bank" (or the final holder of the lien) owns it. Is it some "third party" who now owns the home the loser? Who is the "predator" and who is the victim?
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There's plenty of blame on all sides.
Certianly people took loans they couldn't afford, or extended themselves assuming their income would continue at personal risk.
Certianly banks and mortgage brokers took advantage of the situation and loaned money to anyone and everyone, putting pressure on the government to ease restrictions so they could come up with all sorts of creative loan products.
Certianly government assumed increased home ownership was good for all political interests.
Certianly there were crooks who took advantage of the situation and made a mint via mortgage fraud.
Certianly Alan Greenspan kept investment in the US Treas. so unattractive that offshore investors were itching to find a better place to park their money.
Certianly investment houses packaged and traded these loans like they were AAA investments.
Certinaly a lot of MBA's were having a field day at their weekend retreats coming up with new schemes to make millions off of the trillions in notional value flowing through the system.
Certianly the SEC was out to lunch.
But hey, it's a lot easier to blame everything on Barney Frank. He is gay after all...
-spence