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BUT, the people who took out these loans did not start this bogus market. It WAS the gov't. I cannot walk in a bank and say give me a No Document, No down payment loan. The govt created these programs to do what they wanted, print money! That's what they did. Drove up the housing prices, generated all this money in loan proceeds and now, yes, you factor in American greed/entitlement & people bought houses they couldn't afford.
I was looking in early 2006, and I REALLY wanted to buy my first home at that time. But the average price of a 2bdr in my area was hovering around $180K. I knew there was NO way I could afford that even though that loan officer approved me for that amount. So, not to remove all blame from the people, but they didn't get into the mess on their own. Now, we're running to give banks money (which I just love the Citi ads ) & the people are left suffering. It's not right.
Bush-Cheney lets the banks run wild, lets the CEOs take out most of the gains, then gives them a bailout
BUT, the people who took out these loans did not start this bogus market. It WAS the gov't. I cannot walk in a bank and say give me a No Document, No down payment loan. The govt created these programs to do what they wanted, print money! That's what they did. Drove up the housing prices, generated all this money in loan proceeds and now, yes, you factor in American greed/entitlement & people bought houses they couldn't afford.
I was looking in early 2006, and I REALLY wanted to buy my first home at that time. But the average price of a 2bdr in my area was hovering around $180K. I knew there was NO way I could afford that even though that loan officer approved me for that amount. So, not to remove all blame from the people, but they didn't get into the mess on their own. Now, we're running to give banks money (which I just love the Citi ads ) & the people are left suffering. It's not right.
That kind of loans should never have existed but they were so inticing they drew in all the suckers. In 2006 a friend and I went to this seminar for the sub prime loans. The guy was good, and made everything sound perfect. My friend who is knowledgable about loans and credit ask a lot of hard questions and he sort of changed the subject. Asked what you did when the 600 went up he said, oh we can refinance?
But some of the people looked like they'd discovered nervana. They were going to swallow it whole. I wonder how many of them are throwing their stuff on a truck and walking away now.
I'm hoping that somehow the banks have to divulge where their free lunch was spent, but not terribly optimistic. At least we don't have to see Wamu ads plastered all over the place anymore.
180k wouldn't have gotten you a shack in cali at that time. "Starter" homes ( 50 year old track homes ) were going for over 200k. It was all madness.... what goes up must comes down but everyone forgot about that.
"Fear is the mind killer..." everybody knows that line by now but most are still afraid. Why? The Arabs are only going to rob us not come over and kill us. Who would buy their oil if we were dead? That would not be good for business.
PS - the folks that took out the interest only loan with a 24 month balloon were expecting to sell the place in 18 months. They were led to believe that flipping was the way to riches. For a while it really was. A year or so ago they wound up stuck with the huge payments and nobody to sell to. OOPS - speculation can go both ways.
Our Trillion dollar economy was built on wealth that did not and does not exist. It created plenty of money but little real wealth. The smart people bailed before they were supposed to and walked out with any of the wealth that was available. The rest bullied the government into covering their losses. So what else is new?
Partly true about the sub-prime loans, but not entirely. Some somehow thought that they would be able to refinance and it would be okay. Or if not they could sell and make some money. The flippers got caught at their own game.
A lot of our "wealth" does not exist. Those who make 300+k a year but have student loans and an overpriced home and an arm approaching the ballon, may have a real wealth in terms of net income of 50k... but who wants to be reminded of the bad news. Someone else with far less income but far less expense may have much more "wealth" in the end.
Bush-Cheney propagated and sold the war to the Congress and the American people - on falsehood and pretense.
No the congressnal leaders on both sides actaully saw the same intelligence reports as Bush did. In fact look at the estimates of what the experts predicted as losses just in the invasion of Iraq alone and the predictions of whether he would use WMD's. Why do you think that the UN insisted on inspection if they didn't think he had any. Its all just finger poniting aftewards. Saddam even stated in his interviews that he did everything to make people believe that he had WMDs because of Iran and never thought the US would invade.What it shows is just how bad the Church commission hurt US intelligence.
No the congressnal leaders on both sides actaully saw the same intelligence reports as Bush did. In fact look at the estimates of what the experts predicted as losses just in the invasion of Iraq alone and the predictions of whether he would use WMD's. Why do you think that the UN insisted on inspection if they didn't think he had any. Its all just finger poniting aftewards. Saddam even stated in his interviews that he did everything to make people believe that he had WMDs because of Iran and never thought the US would invade.What it shows is just how bad the Church commission hurt US intelligence.
They kept sending UN inspectors and they kept saying the same thing - NO WMD
Originally Posted by GregW
Our Trillion dollar economy was built on wealth that did not and does not exist. It created plenty of money but little real wealth.
Quote:
Originally Posted by 2blessed2stress
Smoke & Mirrors
Don't need no stinkin wealth, it don't buy nothing. Money's all I need to get Bama inaugurated.
Forget the blame, watch the foreign investors dump the dollar and the U.S. economy collapse. The ship has sunk and the billions and trillions of funny money bailout are going to make it all worse and deepen the pain. Yes the war has it's part, so does the loaning of money to 100's of thousands of loans that were given to people who should have never gotten one. Greed it appears. Or was it planned? Surely those who gave out the loans against their better judgment with cheap Federal Reserve money knew better. So why did they do it?
While America is sitting atop TRILLIONS of barrels of oil, much of it the very best grade---lightsweet crude--foreign investors will NEVER---I repeat: NEVER dump the dollar. And that you can take to the bank!
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) & the people are left suffering. It's not right.
