Did the banksters and Wall Street barons have ANY responsibility in this?
Was it not their pure, unbridled, unadulterated raw GREED that lead to the near total collapse?
Are these people free of blame in your eyes?
Why would greedy bankers make loans to people with poor credit scores and insufficient income?
I dunno...you tell me!
However, I think you know the answer already.
They. Were. Making. Money. Hand. Over. Fist.
No. Sir. You. dont. know. what. you. are. talking. about.
Learn something here....
Every loan is reviewed by an underwriter....every one of them. The underwriter has the responsibility to take the information presented to them by the bank regarding the borrower and makje an educated decision taking into consideration:
1) Appraised value of the property
2) existing debt on the property
3) Income of the borrower
4) Employment status of the borrower
5) Stability of the borrower (such as how long they have lived where they live)
Now, due to what congress saw as "discrimination" in the lending industry, the lending institutions were told to do what ever they had to do to be more "fair" as it pertained to who they lend to or risk losing certain government accrediations and other government perks.
So they decided to leave it up to the borrower...they decided to let the borrower say whatever they wanted to on the application (affidavit once signed)....and if they lied, so be it....but then, when it goes into foreclosure, the bank can say "hey, we lent them the money. Not our fault they lied."
The banks were making nothing with those loans. Sure, the sold many of them off but it was very much like a barter system...they would sell ABC off and buy DEF.....no one but the mortgage brokers made money on them.
Why do you think the government was so ready to bnail the banks out? They KNEW they set them up to fail.
SO enough with the "business is evil and goivernment is going to save us" crap.
It is nothing but crap.
Wake up and smell the coffee.