housing crisis, who really caused it?

[Stillrunning]

Originally Posted by Mac_Attack

I didn't know the dems had the majority for all those years. Whatever, both parties are to blame and we the tax payers are going to pay. Maybe the pubs can succeed with their plan. Billy Mac

Well it all really begain back in the 90's when Clinton called for a mandate (spelling) to make getting a home loan much easier. Their were other things put in place in the 90's which was passed by congress (both parties) to help people obtain loans. It all started rolling in the late 90's these people started getting their loans and in a couple of years had trouble paying their house payment. At the time the housing market was taking off so the people had an easy out by selling their homes instaed of forcloser which is now happening in a soft market. This strong housing market masked the problem because it was so easy for people in trouble to sell their home and even make a profit. Now the market is soft and the people in trouble cannot sell their homes and the banks & mortgage co's are taking the hit. More took place but this was the root of the problem.

Also remember back years ago when the only way most people lost their home was because they lost their job or had a family emergency. Today people are loosing their home and still have the same income as they had when they purchased the home a few years back. Allot also took these interest only type loans and took the money they saved and purchased cars and new toys which they are making payments on and the money should have been saved to pay their loans. Plenty of blame to go around.

[Blue_Runner]

Its sad but the consumers are mostly to blame. If I took out an interest only loan to buy a home or an adjustable rate mortgage I would have KNOWN that the interest rate would be subject to rise. Hence why should I be surprised when it actually does rise and I get forclosed?

Once again people blatently living outside thier means.

My wife and I are both 35 years old. I am a successful Systems Analyst for 11 years now with a BS in Computer Info Systems and Mrs Blue graduated with a BS in business and most recently works as High school business teacher.

Neither of us have ever owned a new car.

We built our first home while in college - I was making $10.30 an hour and she was waiting tables.

My point is there are alot of people in this world who use credit waaaayy too much. If you don't have the money now what makes you think you'll have it in the future? It makes no sense to me.

[bradford]

Originally Posted by Blue_Runner

Its sad but the consumers are mostly to blame. If I took out an interest only loan to buy a home or an adjustable rate mortgage I would have KNOWN that the interest rate would be subject to rise. Hence why should I be surprised when it actually does rise and I get forclosed?

Once again people blatently living outside thier means.

My wife and I are both 35 years old. I am a successful Systems Analyst for 11 years now with a BS in Computer Info Systems and Mrs Blue graduated with a BS in business and most recently works as High school business teacher.

Neither of us have ever owned a new car.

We built our first home while in college - I was making $10.30 an hour and she was waiting tables.

My point is there are alot of people in this world who use credit waaaayy too much. If you don't have the money now what makes you think you'll have it in the future? It makes no sense to me.

Fellas, we are in the presence of pure economic genius.

[THEFERMANATOR]

Originally Posted by Blue_Runner

My point is there are alot of people in this world who use credit waaaayy too much. If you don't have the money now what makes you think you'll have it in the future? It makes no sense to me.

EXACTLY! Why do people need to finance a big screen TV? Why should people be financing a car for 60, 72, or even 84 months when they know fully good and well they won't keep it that long? I still feel the root of the problem is NOBODY is willing to come out and tell the truth. Just simply tell people "Grow up, start acting like adults. If you can't afford it, then don't get it. And don't come cryin when your world comes crumbling down because you acted irresponsibly and got yourself in over your head." I know this doesn't apply to everybody, but it applies to WAY TO MANY!

[reelapeelin]

Perfect Storm of socio-economic conditions...politicians on both sides of the aisle not paying attention as we sent them there to do, the general population going about their own business of survival, as we must, people wanting to better themselves and being told by people who know better that they could, toss in a large dose of "the ME generation" and a simular amount of human nature manifesting itself as greed in this case...

All the hurry uppers who want it now are scary as hell...

I'm hearing credit will dry up and businesses from small to gargantuan won't be able to borrow money to run their businesses...OK, I get that's a problem...so why not loan it directly to them instead of recreating the lenders who loan it to them, who got us here in the first place?...that way it could be lent out at much lower rates and really jump-start the economy...there'd be nothing artificial about it...

[spareparts]

Reel, thats a great point, lend it out like the small business loans, but make it strick. I have an excellent credit rating, I work hard to keep it that way. It tee's me off that all these idoits are out there borrowing money for a tv for 5 years, or buy a used lexus and finacing it for 10 years. Like I said before, no one needs a $50000 pickup, no one needs a $90000 car. no one needs a $750000 home that sits on 1/2 an acre, common sense seems to be a rare comodity. ACt like you have ome common sense people. Right now, my biggest expense is health insurance, it cost me more than my home loan, all my utilities, all my property taxes. I'm stuck with it on my daughter and my wife, I can't change it do to preexisting issues. I'd like to go at least one year with making some insurance executives beach house payment for the year( the Doctors I deal with earn every bit they make). Whew, I feel a little better now, where did i leave that bottle of Bulliet at?