Bush isn't to blame for the collapse of the financial market. The blame goes to all those idiots that bought a house they couldn't really afford on an adjustable rate mortgage and those people that took huge home equity loans out on their homes when the price was inflated and interest rates were cheap. Now they are walking away from their huge debts that are greater than their properties current market value. These people who defaulted on their debts caused the financial institutions huge losses. (Naked short selling by the hedge funds of their stocks worsened the situation for Countrywide, Fannie Mae, Freddie Mac, etc).
No one told those people to take on huge debt, live above their means, then walk away from their debt. They are to blame, not George Bush.

 

I agree with Bogie in a way , except the fact that the blame doesn't lie on one persons shoulders. Ya before you buy a home you need to understand what your signing and the long term aspect of the mortgage, but some of the blame also lies on the shoulders of the financial institutions. They took everyone for a ride, expecting huge financial profit from variable rate loans and interest only loans. This whole war has also caused alot of the problem with our economy. How much is gas now? Gas prices have a huge part on the economy, that started this whole downward spirol effect. Don't get me wrong I hate Bush "in more ways than one"....LOL, but he's not solely to blame for this.

 

Haha! So lemme get this straight... Instead of choosing to blame your holy leader... Or even to blame the huge financial institutions that lend... You blame individuals? People mortgage over their heads all the time bucko! It's all part of what makes your country so great, right? Money/capital is easy to come by... So buy your audi, home, and start a business while you're borrowing! Seriously though, if the situation you guys are in now was predictable, the lenders wouldn't have risked their necks by lending on the terms that they did. Your government has screwed your economy dude. Check out the national debt!

 

I agree - somewhat - but if you know the market - it doesn't work like you think it does.

Yes, people got into debt way over their heads. But the banks are to blame for lending to them.

If you've ever bought a home, you know, only an alien **** probe is more painful to go through. They comb your finances and credit history to make sure you can afford this.

Now with the de-regulations of the lending industry - they were more than eager to lend to anyone. Why? Here's how this works.

As soon as you buy a house the original lender will sell your mortage to another lender making a quick turn over sale. Then that one will do the same. It will eventually end and that lender will hold onto your mortage for usually the life of the loan.

With all this trading of loans - it was a free for all with the subprime lending scheme that was authorized to help stimulate the housing market. What it did instead was expose a crack where greed could pour through.

Funny, when I bought my house a year and half ago - I talked to the guy whole over saw the signing of the papers (can't remember what they call that) and he was mentioning how the market is going to feel the punch of the subprime setup soon.

We didn't take that option we went fixed at 6.25 - so our rates won't jump. But others who went under with the subprime bs thought that they could easily refinance later to a fixed. But the market was busting at the time their rates jumped so that was not an option.

I'm over simplfying perhaps, but the blame mostly goes to the banks and lending agencies in loosening their practices.

Adam is the best guy to answer this and if I know him he'll be posting a financial report soon

Maybe we can have him answer here in layman's terms so we can all know who's to blame

 

And just to add - unfortunately, the Government's job has become to protect us from ourselves. In this case they failed. Greed with no oversight was what caused this debacle.

 

^ to reply, my wife and I bought our house 2 years and 3 months ago fixed rate mortgage. I pumped more than I'd want to admit into remodelling the ENTIRE house, minus the roof, windows, and siding. All said and done, 2 yrs later, I paid to have the house re-appraised. We had originally expected an extra $50K of added value from what we'd seen on HGTV shows, but with the market conditions it only increased 7K in value. So I was impacted by the dropping housing market.

I also have a good friend who dropped out of college to sell mortgages 6 years ago.
He sold subprime mortgages to people with very poor credit, and got countless people to refinance to free up money to live their dreams. He knew most of them would default, but he was a salesman and raked in cash during those years. Needless to say, he hasn't been selling mortgages for the last 2 years.

I disagree that the government's job is to protect us from ourselves, although they do tend to have enough regulatory agencies, departments, and employees to do so.
In the Constitution, the way it was originally written, the government's job was to deliver the mail and defend our nation's borders.
Their job description has increased so much in the last 200 years to encompass more than it should. The government's job is not to feed and house the poor (and lazy) and provide free (tax-payer funded) healthcare. It's not to protect us from "predatory lenders" (like my buddy, lol). It's not to give every immigrant a free (tax-payer funded) education. It's not to protect everyone's 401K plans that lost 30% over the last 6 months, causing people to push their retirements off another 5-10 years (and some will blame it on the government).

People have got to start taking care of themselves and their families. People have got to start holding themselves accountable for their education, living conditions, amount of or lack of $ in the bank, etc... It's time for the American people to stop blaming the government for everything that they've failed to provide for themselves and their families. It's time for the males to start being Men.

For everyone else that wants their government to be responsible for providing everything to them and wiping their asses, please move to the socialist or communist country of your choice. Thank you.

 

^ Very well put !!! Agree 100% with that !!!

 

Actually, I also agree - but somewhat...

You're over simplying the Constitution. It lays out a great deal more than that and I'm not including the 27 other Amendments! lol

But Government does do that. By placing laws of the land it lays down that initial protections against the evil-doers of the land. But now, and this is where I agree with you, people expect that protection across the board.

In certain areas - yeah, maybe - in others - hell no. Seatbelt and helmet laws we don't need. If a person is too stupid to wear one - then so be it. But even there's a fine line argument. What if the person was forced to wear one and didn't slide sideways as he took the corner at 60mph and thus lose control of his ricer and wiped out two kids skateboarding? With the law in place - he may have made the turn and the kids lived...?

Like I said, a fine line.

But like all things, protection for the mindless, sheep herding masses is an unnecessary burden for nearly all the industrialized nations.

Look what happened with the banks? No regulation, free market enterprise turned into a "take what you can".

The idea that the free market can govern themselves is a fallacy. In basic consumer goods - yeah - but in other markets? no.

So what do you do? Build an agency, like what McCain is proposing that does pretty much what the SEC does now, generating more government beuracracy? Or build the SEC even bigger - let it become a monster like the IRS - what Obama will most likely do?

In a perfect world, greed would take a back seat - but unfortunately, that didn't happen with all those banks now failing like they are and the fat cat CEO's still getting their payouts.

Honestly, I think that's what needs regulating. And this can be self-governed. Salaries are performance driven. You drive your company to solid performance you get a solid bonus - drive it into the dirt - you get dirt. This golden parachute crap has got to go.

But the whole system has gotten greedy. Hands down.

 

My god can some of you actually do some unbiased research or at least back it with fact instead of pure opinion. Either way this country will loose with the two party system.

 

^ Well there are facts, which contains something like what we learned in grade school, you know......who, what, when, why and how. Take all those into account and you come up with an opinion. Everyone see's the situation and percieves the facts a little differently. But if you would like to take a crack at the topics discussed here....by all means take a crack at it and enlighten us, so we can see the light !!!

By the way there -----> are <---- more than 2 parties to choose from. They never seem to get elected, but there are more than 2.