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#107 - SNOOFY

And since the banks could only leverage themselves because the government said they could that means it's the government's fault. I love this pass the buck game. Then government blames Congress critters who were just doing the will of the people who elected them, but the people did not know any better because of a lack of education, which is the fault of the government, who was elected by the people, who don't want to pay higher taxes, because the government is over spending already, but the lobbyist in DC are bribing them to spend more, so it's not Congress' fault it's big business bribery, businesses who are trying to meet the demands of the public, because the public doesn't care about business ethics as long as it's cheap, so the public is okay with anything, but it's not the public's fault, they are just victims of the capitalist system which promises them more...and on and on and on and on... Just stop already. You took out a loan you couldn't afford and you gambled on your future. End of story. You did not save up enough money to put down a significant down payment in order to safeguard your investment. You borrowed too much house and gave yourself no margin in your budget for anything bad to happen and you lost. You, home buyer, you are at fault for YOUR sub-prime purchase. Period. Own it. Any action you take after about the age of majority you have the capability, the reasoning, and the resources to know better. If you don't, jokes on you. I'm not talking about the disenfranchised. There's a caveat for everything. But by and large the people who took out these sub-prime loans knew what they were doing, gambled on their future, and it bit them in the a$$. And guess what? It'll happen again in about, oh 7-9 years.

#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?


I take issue with putting all the blame on the greed of those making money off the borrowers. What about the greed of the home buyer who wanted more house than they could afford and gambled on the future. What about their greed? You think these 30 million people were surprised when all of a sudden their ARM payment exploded? They knew the day they signed the papers they were sitting on a ticking time bomb. It's called gambling. Greed. Americans are good at it, at all levels of society. So yes the sub-prime lending and loan repackaging greed of Wall Street found a way to appease the greed of the every day American consumer. Pretending one specific group was responsible is short sighted imo. We need to re-examine the way our society functions because this isn't the first bubble or crash we have created. Look at bitcoin. It may have some function in society and there may actually be value behind the crypto-currency system. But human greed took over, created a bubble, and now poof...billions in "value" disappeared. All without Congress, Dems, Reps, Wall Street, etc. We, the every day humans, we did that.

Also, I have a hangup about the victim mentality. At some point I had to become responsible for my actions and the outcomes of my decisions. No one else. There is an age of accountability when you should understand it is your job to seek out counsel and advice, but ultimately the decision is still yours. Did you use bad information to make a decision? Do you not know how to discern good information from bad information? Who's to blame for that? You are. Did you take a gamble on the future of your finances and attempt to predict housing prices and your own income 5 years from now? Um...that's stupid. Why would you? Ah, you couldn't afford the 2600 sq. ft. new construction house with the pool in the back unless you leveraged your future. You greedy bastard. But there's a loan program for that. There's also a gambling boat on the river you could just go make the cash real quickly.

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