Is bushco responsible for the housing market slump by profiteering the big corps rise to power&profit ?

Question

in loans?

ya,,,pass the buck,,,thats the way of big bushco,,,

freedom,,,,ya right they knowing signed ,LIKE THEY HAD A CHOICE,,if they wanted the house?that free market B,S way or what way???

Answer 1

In a word,,, Yes,,,,, the old adage "the buck stops here" applies. It's Buchco's fault for everything. Why my prostitute, needle using daughter is having an abortion is all Bushco's fault. Had the housing market been doing better she would be the CEO of Better Homes and Gardens instead of turning to a life of prostitution and drugs. I can't wait until he is out of office and my daughter will once again turn to a better life without Bushco.

Answer 2

I don't blame Bush & Administration for this. The current problems are all due to market forces. If you want to blame someone, you could actually blame Alan Greenspan (now retired) more than anyone else. It was under his leadership that interest rates went so very low (trying to help the economy improve). The rates were bound to go up to prevent inflation. But the results aren't the federal reserve's fault, either.

The real problem came from the mortgage companies and the people who were stupid enough to sign up for loans they didn't understand. The last time you want to buy an Adjustable Rate Mortgage is when rates are at 50-year lows. They are going to go up! And probably fairly quickly.

You buy ARMs when rates look like you can expect them to stay steady or even go down. But when you know rates are going to be going up, you want a fixed rate mortgage.

This isn't rocket science, but people who weren't able to understand these utter basics bought the wrong loans. And the mortgage companies went along with it.

And why would they? Well first, the mortgage business is very competitive, so if you want the business, you need to compete. But also, traditionally mortgage companies make money when people default on the loans. They take your house and sell it! Usually for more than the loan is worth.

But with the housing market dropping like crazy, the mortgage companies are also running into trouble. They are left with a huge supply of houses they own that they can't sell.

Also, as interest rates go up, housing prices fall. People are forced to buy less expensive houses to keep their payment lower (they have a higher interest rate, after all). So those low mortgage rates helped to inflate the housing market unreasonably, and now that rates climbed just a little bit, we're seeing the results.

The problem isn't over. It's going to take several years to shake this out.

It's a GREAT time to be a first time home BUYER. Horrible time to be a seller.

Answer 3

Nobody forced all the morons to take out an ARM they couldn't afford. They willingly signed the papers knowing the risks. It is ENTIRELY the fault of the people that willingly signed the papers, and nobody elses.

Answer 4

Of course not. Defaulting on loans did that.