Stay focussed
- Thread starter Duck_walk
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Here is what you don't get. He wanted to sell his house but it's value plunged due to deregulation of the financial markets bought and paid for by wall street. He would have done the right thing, but we had the largest redistribution of wealth in history. You seem to think inequality is cool beans. Carry on.
that's not the real problem, the real problem is the housing bubble made houses too expensive due to the extremely loose lending standards which were in effect
with appropriate regulation the drop wouldn't have been as bad because the peak wouldn't have been so high.
with appropriate regulation the drop wouldn't have been as bad because the peak wouldn't have been so high.
And people thought they could afford a $300k house on a $50k a year salary.
In the 60s and 70s the banks would have never qualified those people so they wouldn't have gotten themselves in the mess. Banks wouldn't have been selling mortgages as investment instruments the bubble wouldn't have occurred so the dude could have sold his house when he go layed off.
A large percentage of those loans weren't issued by traditional banks. It was the countrywides and others like them who were not banks who pioneered these horrendous loans.
The weak spot in financial regulation sat in entities that weren't subject to banking regulations.
The weak spot in financial regulation sat in entities that weren't subject to banking regulations.
Local BANKS in my community were qualifying people for loans they had no business getting. They were then selling those loans to other companies who were packaging them. Homes were being appraised absurdly high all over the country. Smaller banks were competing in the mortgage business and then selling the loans all over.
I agree. Part of the blame goes to the "entitled generation" buying expensive homes instead of starting out in life with a modest home like people did in past generations. Still, they were encouraged by banking practices that banks knew and were betting on that many would not be able to afford. Agree that banks would not have given such loans in past generations.
Yes, it was not exclusively the province of the loan companies.
A lot of those little banks felt a disastrous desire to keep up with the joneses. When you lose 10% of your marketshare to Countrywide...that can cause you to emulate their practices.
A lot of those banks ended up failing.
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