Who is to blame for the current mortgage crisis in the United States?

Question

Do you blame the banking industry, Alan Greenspan, home buyers, real estate speculators, etc.? I'm very curious what your opinion is. Thank you.

Answer 1

Who do YOU blame for the DotCom Bubble in the stock market? Who do YOU blame for the wild "Ostrich Market" a few years ago when they were microchipping eggs for thousands of dollars? Who do YOU blame for the Great Turnip prices thousands of years ago?
Thruout history you can find examples of "herd mentality' causeing a mania over something and the ONLY thing different is that this time the product was real estate.
Instead of assigning blame; which gets you nothing other then wasted time; how about doing something productive and trying to identify WHY these things happen and how this WILL affect you in the future.
Regardless of WHO you blame for the current market; the cold harrd truth is that EVEN if you KNEW EXACTLY what was going to happen and WHEN it was going to happen, you could NOT prevent people from doing stupid things. If you were President Bush and tried to control the morgage market ; you would have been seen as "socialist", "the rich protecting their turf on not letting the small investor participate in the greatest real estate market we have ever seen", "this is a free country so why is Big Brother preventing me from making money in real estate?".
The realtors were ONLY doing their job of helping people buy what they say they want to buy and getting paid for it. Lenders were ONLY doing their jobs and SELLING a product.
The real blame is the people who gambled on a high risk loan with terms they SAY they didn't understand but the truth is that they KNEW they could not afford the loan but wanted it as an" investment".

Answer 2

Some of the first-rate minds are addressing this hindrance , correct now , within the quite a lot of international locations . We can not ask for whatever higher than this . It is not only the economists who're worried . Sociologists , scientists , unfastened thinkers ... are all worried . They feed their findings and suggestions to the nation heads on the G 20 summit. The international expects that those suggestions will probably be applied and monitored . So a ways so well. Then what is going mistaken after this? It is on this implementation that character international locations fail. These nation heads could have their possess political compulsions and flooring realities that cause them to hesitate to take harsh selections to enforce , fearing a few backlash and lack of political base . At this relevant factor there is not any responsibility This is wherein the G20 and United countries will have to deal with the hindrance . In the previous years Security of the countries and ordinary ordinary calamities made the international locations come in combination beneath the banner of the United countries.Today fiscal trouble is similarly , if no longer extra , an global hindrance . The United countries will have to take delivery of powers to tug up wayward international locations in the event that they fail to enforce the G20 suggestions . If a nation head of a rogue country may also be attempted for treason and homicide of residents ( on the Hague court docket) an fiscal culprit of enormous share will have to even be hauled to the arena court docket for that offence . G20 international locations` heads will name this an 'inner topic' and close the UN out ! This will have to be converted . An AIG , a citi financial institution , an automobile maker failing at any place on this planet spills directly to the arena follor and a couple of grasping persons are in charge for those manipulations . These wealthy persons assignment the governments with their possess crooked authorized methods . if those persons are hauled to the arena court docket the arena will recognize their misdeeds. But this can be a mere wishful pondering . It won't occur . Alternate vigour holds the important thing to show the arena to a different path . 30 years in the past oil converted the economic system and lives of hundreds of thousands within the core east . Mere deserts bought transformed into oasis and the buck reserve and buck exchange in oil is choking the arena. Find a brand new vigour . and we can uncover new avenues establishing up. May be Africa. May be south the united states. Implementation is the important thing.

Answer 3

The banking industry.
Since the Fed kept the rate so low for so long, home sales were beginning to slow. The banks began offering mortgages to people who would not normally qualify with their credit rating. To protect themselves, banks sold variable rate mortgages to those who maybe didn't understand how the whole thing worked. Sure, there's the "buyer beware" thing, but by and large, his was a way for banks to get more money.

Answer 4

It is easy to attach blame. All participants are to blame to some extent. some lenders went overboard in extending credit to sub prime clients. but other lenders were more prudent. Some home buyers went overboard in financing homes that they could not afford, simply because they thought they could sell the house for more when that ARM interest increased. But not all home buyers bought unaffordable homes. Many are still paying the mortgages that are within their ability to pay. Some speculators went overboard in buying up homes to flip, then suddenly found that prices sagged. The least to blame is the FED or the government, in my opinion.

Answer 5

The blame is to be shared.

The buyers for not reading what they were signing and making sure that they understood what their responsibilities were. Or for failing to hire an attorney to represent them if they didn't understand what they were signing.

The predatory lenders for loaning money to people who clearly could not afford what they were buying. And for using contracts there were so incomprehensible that many attorneys can't figure out what the actual terms are.

The attorneys who wrote those contracts.

The Realtors who pushed unsuitable properties on unqualified buyers and pushed them to predatory lenders and brokers in exchange for kickbacks or other consideration.

The mortgage banking industry for failing to regulate their own.

Congress for failing to pass laws to protect borrowers from the worst abuses.

The right wing mindset that it's "Every man for himself, we don't need no government intervention."

Answer 6

Banking Industry
The MortageLenders
Govt.
since they can hide data & free loans to customers who cant pay loans back.
& those Home Buyers who LIE to get loans if any.