Agreed.
Government was only responsible for the real estate collapse in that they had repealled Glass-Steagall, and allowed banks to make incredibly risky loans to each other, knowing the government would then be forced to bail them out.
The claim banks were forced to make risky loans to poor and Blacks through prosecution of discrimination cases again banks is a lie.
None of those prosecutions were to help unqualified buyers.
Unqualified buyers had nothing at all to do with the 2008 real estate collapse.
The buyers were not defaulting on payments until after the the ARM rates almost doubled, and no ordinary person could have made those increased payments.
And the defaults were caused by the banks refusing to refinance at fixed rates.
Government was only responsible for the real estate collapse in that they had repealled Glass-Steagall, and allowed banks to make incredibly risky loans to each other, knowing the government would then be forced to bail them out.
Glass-Steagall didn't prevent banks from writing bad mortgages.
Writing bad mortgages had nothing at all to do with the 2008 real estate collapse.
What caused the collapse was bundling the bad mortgages into derivatives that then were traded as stocks, as if they were of far greater value than they really were, both allowing banks to pretend they had more assets than they really did, and to essentially force government to secure risky stock investments the government would not have had to secure if Glass-Steagall had not been repealled.
The proof these were not bad mortgages in the first place, is that people had been successfully making payments on them for many years.
It was the changes in 2008 that doubled their monthly payment that caused the home buyers to default, and that was NOT their fault. Blaming individual home buyers is totally incorrect.
Writing bad mortgages had nothing at all to do with the 2008 real estate collapse.
That's hilarious!!
The proof these were not bad mortgages in the first place, is that people had been successfully making payments on them for many years.
Refinancing during the growth phase of a bubble is easy.
It was the changes in 2008 that doubled their monthly payment that caused the home buyers to default
You mean that mortgages that were current at 1% interest and in default at 5% interest were good mortgages?
and that was NOT their fault.
People who took out loans they couldn't afford are entirely blameless?
The mortage defaults were never allowed to refinance.
The bubble busting made their home not worth enough for them to qualify.
They owed more than the home was worth.
But they still would have kept making their old payments because they would want to protect their down payment.
But they could not make the new ARM payments that as much as doubled.
There were no 1% interest mortgages.
They lowest mortgages during the bubble were around 8%, and the bust made them jump to over 15%.
The drop to 3% did not happen until years later, when there were so many foreclosures that banks had to eventually drop rates.
Almost no one took out real estate loans they could not afford.
They were making the payments successfully, and could have continued doing so.
It was their rates being jack up deceptively by ARM loans that forced them to default.
Do you think they just wanted to throw away their down payment and years of monthly payments?
They liked being make homeless?
Again, read about the LIBOR scandal.
Libor scandal - Wikipedia