Quote:
Originally Posted by Swimmer
Spence, who held a gun to the borrower's head? Lender abuse. The borrowers got thier mortgages at the lowest rates in history and still couldn't pay the monthly bill. What about the dopes who took out the interest only loans? Show me one instance that a borrower said the guy at the passing was holding a gun?
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Often people couldn't pay the bill because of misleading ARMs that blew up or inflated prices plunged and put their houses under water. Money was so easy that predatory lending became common as risk was obfuscated.
Many markets had outpaced the average consumer.
I've repeatedly said that irresponsibility was certainly an issue for some, but the real crisis was due to a system that encouraged lending into a market that needed cheap credit to exist. It was like a coke head that just needed more coke to keep from crashing.
-spence