Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe Community Center
Current Events
What Caused the Financial Meltdown?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="av8torntn" data-source="post: 403690" data-attributes="member: 8259"><p>caveat emptor not caveat venditor</p><p> </p><p>I could not force anyone to take a loan and especially in this climate of government over regulation I could never believe that some lender took advantage of a borrower with all the things you sign at closing. I do not think the lenders were greedy at all. If they were they would have made enough money to survive during the down cycle. </p><p> </p><p>My view only and I understand most of the Country agrees with your view. The consumer knew the stakes when they decided on an interest only loan or a loan for up 125% of market value of the property. They also knew they put up their property to secure the loan. The lenders knew they were buying high risk loans and they knew the default rate would be higher. The citizens now demand that my tax money goes to bail out these two groups. The reason as far as I can understand is that they want to be able to continue to make loans to keep home ownership rates high and to be able to make home equity loans so people can continue to use their homes as an ATM machine. I would rather see these markets fail and in my opinion if the government got out of the way a more efficient model would present itself in the marketplace. </p><p></p><p> </p><p>The only kink in the system from my point of view was the federal government not allowing a free market. By this I mean they kept interest rates at an artificial low and they created entities to purchase these high risk loans. The consumers demanded this from the government to continue to drive the value of their homes upward. No surprise to me this system does not work efficiently. This cycle has been predictable in the larger markets for years. Yes I understand this is a little larger than in the past. In the past it has been more of a regional thing. One reason is that a larger group of the general population is now a homeowner. </p><p> </p><p>I understand that I have oversimplified this problem. It was not meant to mock you it was for the benefit of someone else.</p></blockquote><p></p>
[QUOTE="av8torntn, post: 403690, member: 8259"] caveat emptor not caveat venditor I could not force anyone to take a loan and especially in this climate of government over regulation I could never believe that some lender took advantage of a borrower with all the things you sign at closing. I do not think the lenders were greedy at all. If they were they would have made enough money to survive during the down cycle. My view only and I understand most of the Country agrees with your view. The consumer knew the stakes when they decided on an interest only loan or a loan for up 125% of market value of the property. They also knew they put up their property to secure the loan. The lenders knew they were buying high risk loans and they knew the default rate would be higher. The citizens now demand that my tax money goes to bail out these two groups. The reason as far as I can understand is that they want to be able to continue to make loans to keep home ownership rates high and to be able to make home equity loans so people can continue to use their homes as an ATM machine. I would rather see these markets fail and in my opinion if the government got out of the way a more efficient model would present itself in the marketplace. The only kink in the system from my point of view was the federal government not allowing a free market. By this I mean they kept interest rates at an artificial low and they created entities to purchase these high risk loans. The consumers demanded this from the government to continue to drive the value of their homes upward. No surprise to me this system does not work efficiently. This cycle has been predictable in the larger markets for years. Yes I understand this is a little larger than in the past. In the past it has been more of a regional thing. One reason is that a larger group of the general population is now a homeowner. I understand that I have oversimplified this problem. It was not meant to mock you it was for the benefit of someone else. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe Community Center
Current Events
What Caused the Financial Meltdown?
Top