Once again, failing to hold the consumers accountable for their uninformed decisions.
No, I am not.
I quite agree with you that some people were simply GAMING the system.
I have pointed that out repeatedly and despite that, you keep denying that I have acknowledged that fact. I'll leave it to you to explain why you keep trying to put words into my mouth.
However, had the rating companies been doing their jobs, instead of pandering to their clients (and being paid handsomely to LIE for them) the BANKS would NOT gave lent money to foolish and GAMING home buyers, because they could NOT have passed off their crappy risks to the Fannie Mae because no BOND PURCHSERS would have bought their FANNIE MAE'S bonds, and NOBODY could have sold dereivatives on those bonds, either.
Do you NOT understand the chain of events that lead to this situation?
Apparently you do NOT.
The banks would be fine right now, had the borrowers known what it was they were signing. Of course, signing that mortgage and securing the loan was more important to most people than being informed about whether or not it would ultimately be a good decision in the first place.
Are you suggesting that the banks did not KNOW that "No income verification, NO assets verification" (NINA) loans carried a high degree of risk with them?
I mean, seriously, do you NOT think that banks should have understood that lending money to people with no known incomes or net worths was a SOUND and CONSERVATIVE BANKING PRACTICE?!
So your answer is that government should do the job that consumers should have done themselves.
No, per usual, Paul, you are making up my postion to argue points I do not make.
The RANTINGS COMPANIES should have been doing their jobs and then NONE of those NINA loans COULD have happened.
The failure, the primary failure was in the PRIVATE SECTOR...most especially in the THE RATINGS AGENCIES.
Just one more way the citizens of this country become even more stupid and apathetic.
True...and the citizens who were stupid and apathetic were who, exactly?
The BANKS AND RANTING AGENCIES AND BOND BUYERS AND DERRIVATIVE BUYERS AND SELLERS WHO SHOULD HAVE KNOWN BETTER than to buy such risky financing instruments.
After all, they were the finacing professionals, were they not?
Now consider this...
Those people who actually WERE gaming the system, thse consumers who the finance professionals allowed to buy homes with NINA mortgages were actually SMARTER than the fiance professionals.
After all, they can just WALK AWAY from the homes, and who really gets hurt?
The BANKS and anyone who bought their bonds or derivitives, and of course, the public that these pansies financeiers are now demanding BAIL THEM OUT.
So YES, I hold the banking iindustry FAR MORE accountable than I do the people who played it for the selfish, short sighted fools they obviously were.
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