#100 - HATTER
And everything you read on the internet is true. No one ever lies. Every sales person you meet only has your best interest at heart. Everyone deserves a trophy. Unicorns, Santa Claus, the Tooth Fairy and the Easter Bunny are real. I mean. Give me a break. I knew ARM loans were a bad idea before I had my DL. I mean, it's only the largest financial purchase you likely ever make in your entire life. And you want to say it's not the borrower's responsibility to educate themselves? Please. It was a gamble and millions of people made the gamble and lost. Yes, the bankers did bad stuff and they should be prosecuted for it. But attempting to absolve Americans of the underlying greed that drives our every day habits is idiotic and does nothing to address the fact with everything we touch we create a bubble.
#96 - SNOOFY
You decry the banks who were leveraging themselves into a liquidity crisis while overlooking the fact that home buyers were doing the EXACT same thing! Except home buyers were leveraging their capital investments by 100-200x their capital...having no assets, no budget margin, and no plan for what should have been an obvious eventuality. The boom/bust cycle of real estate has been happening for just short of 200 years in America. This is nothing new. Four times in the 1800's, the Great Depression in 1929, break for WWII, and 3 times since...it actually has an average life cycle of about 18 years. Everyone who bought a house using subprime lending had either already lived through a housing bust, or two, or had parents/grandparents who been through the exact same cycle multiple times but they all most definitely knew that interest rates would not always stay low or that housing prices only go up. Other than for those who were illiterate, had no internet access, and were without parents there is no reason anyone who bought a house in the early 2000's should have believed housing prices only go up.
Answer this one question. If those who were buying homes hadn't leveraged themselves by 100-200x their capital, would the banks have had liquidity issues that could not have been resolved by the SEC changing the capital reserve requirements to strengthen the banks?