Quote:
Originally Posted by Dan40
The industry assumed that the houses would continue to appreciate. They should have got their fingers burned for their wrongful assumption on "Good" mortgages.
The sub prime, WORTHLESS, mortgages were forced by Congress passing and or repealing laws to prevent poor lending practices.
What the industry did should have caused them to loose money and fire some executives for poor leadership. That's the normal, natural cycle of business.
What Congress did was to Create worthless paper and put people in houses they would never be able to afford. Congress created an imaginary market with imaginary money. And now they are borrowing more money to pay our outrageous debt. And promising that the totally impossible will work fine.
Congress GAVE [in exchange for VOTES from the poor] the financial industry a license to steal. And now express SHOCK, that they did steal.
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All true - I wonder what those people that ended up in the middle of a foreclosure think about who may have given them a little indirect push to buy? Yes, it's their fault but relaxing standards allowed them to go that route - a foolish move at best. It seems that those who profess to look out fore the little people, democrats and liberals, appear to screw them instead and on a regular basis. A leg up, not a hand out is the only way to go.
I suppose the liberals thought that poor people or low income people would go for, for example, a $100,000 house but instead they went for a $200K to $350K house on the come. It seems that whenever laws are passed that attempt to influence the behavior of people, especially poor people, they end up screwing them versus helping anyone.