Its not that the housing market is in a slump, its all the people getting hurt by it. One of the republican arguments was that more Americans are becoming home owners and living the American dream. The mortgage companies, some of which were heavy contributors to republicans, put people into homes that they could not afford. Anyone with a brain would know that there would be a high foreclosure rate at some point. It was anticipated but ignored. You can't convince me that people did not know but there only concern was making money and the hell with what follows. This seems to be the way of things, especially with the greedy, single minded, short term gain republicans.
2007-08-15 05:07:11 · 9 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
I beleive they concocted a plan to lower housing rates kowing more people would buy. Then offer ARMS knowing they could then rase the rates. Then to top it off offer relief to the lenders.
But it's just a wild guess.
2007-08-15 05:16:31 · answer #1 · answered by Anonymous · 2⤊ 3⤋
no no no... don't blame republicans for that one.... true, the mortgage companies did put people in homes that had NO business getting a loan... but, how is this a party-line issue? because you say that pubs are in the mortgage companies pockets??? prove it. the fact is, during the housing boom we've had... the financers took advantage of it and reduced their requirements.. but something you may not know... do you know who pays for the foreclosures once they happen?? the government or the taxpayer if you wanna look at it that way. so, why would the Pubs take money from the mortgage companies and then turn around and give it back to them once the house has been foreclosed??? doesn't make sense...
btw, what happened to individual responsibility??? that's the problem with the Left.. can't put the blame in the right place. i'd blame the stupid fiscally irresponsible buyers before i'd blame the politicians OR the mortgage companies....
2007-08-15 12:25:24 · answer #2 · answered by jasonsluck13 6 · 0⤊ 0⤋
It's like the business cycle in miniature. When a market gets 'overheated,' people do make irrational decisions. The housing market was rising so rapidly that people who couldn't afford to get in at the time were afraid they'd /never/ be able to get in, as the price of homes kept rising faster than thier incomes, but, they figured that if they 'locked in' the current price, they could, in a few years, as thier income rose, begin to afford a normal mortgage (in the meantime, they'd pay an interest-only or negative-amortization loan) - and, all the while, they'd be gaining equity as the housing market continued to soar. In thier defense, the market was soaring, had been soaring for some time, and has /always/ risen over the long term.
Similarly, lenders were pressed for income with interest rates relatively low, and they saw the constantly-rising real estate market as a safe bet - even if a debtor couldn't service his loan, he could still 'flip' the property to pay it off, and the lender woul proffit the interest payments made to that point. (It actually got a lot more complicated than that, with mortgage derivatives and so forth, but that's not worth going into).
Both lender and borrower thought they were being rationale, but, in fact, were caught up in the expectation of a perpetually-rising real estate market. When the market stalled....
2007-08-15 12:20:59 · answer #3 · answered by B.Kevorkian 7 · 2⤊ 0⤋
Unbelievable Once again shifting blame on Republicans .Apparently this big plan of the Liberals that took over control of Congress was to make you believe no matter how bad they screw things up (which they have done big time) just blame Republicans . In realty if you are blaming Republicans then you are as stupid as the Idiot that posted this question
2007-08-15 12:31:33 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Yep! Take any personal responsibility out of the big picture and then you can blame "those evil lender capitalists" for this overblown problem.
No one held a gun to the heads of these people signing on the dotted line, therefore biting off more than they could chew.
Did you know that John Edwards wants a Federal fund set up (increase taxes) to bail people out for their own mistakes?
The mindset of Liberalism. Why do we put up with it?
2007-08-15 12:29:42 · answer #5 · answered by dave b 6 · 2⤊ 0⤋
I blame the people that bought houses they couldn't afford before I blame all Republicans, or even the mortgage companies. Often the reason is these people have bad financial management. Financial mismanagement is not unique to the housing market.
2007-08-15 12:17:05 · answer #6 · answered by Pfo 7 · 3⤊ 1⤋
less than 1.3%of the mortgages are in default. and they are probably people who bought a home knowing they couldn't keep up payments. they were speculating that the market would continue to go up.
they bet and lost.
2007-08-15 12:19:44 · answer #7 · answered by david_74056 3 · 2⤊ 0⤋
You're right. Low income people should never be given loans for a house. They should be forced to rent and live in HUD/Section 8.
We could have prevented every foreclosure ever if we just put an end to evil capitalist policies such as individual home ownership.
/sarcasm
2007-08-15 12:15:53 · answer #8 · answered by freedom first 5 · 4⤊ 4⤋
Your exactly correct. Mortgage processors took advantage to make a quick buck while the rates were down. I think they should be fined for every bad motgage they wrote.
2007-08-15 12:16:29 · answer #9 · answered by World Peace Now 3 · 5⤊ 3⤋