Quote:
Originally Posted by cobra bill
The larger problem seems to be the oversight, it seems too many brokers were writing loans that they knew were bad, and no one was watching them. Look at it this way if you were poor and someone was telling you they could get you a loan, do you think they are going to turn them down because they might not qualify? NO, they are going to take that loan, I think the problem was brokers pushing loans that they knew were bad, they also knew they could be bundled and re-sold and would be long gone when the truth came out.
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OVERSIGHT? As in enforcement of Government regulations? And
WHO is in charge of enforcement of Government regulations? The Government! And who is in charge of the Government? The Politicians!
So if oversight is NOT done, it is not done at the direction of the politicians!
I cannot look at things like poor people do, since I'm not poor and do understand what credit and good credit ratings means. The scenario you describe is not of POOR people, it is one of STUPID people. Many of the loans were to people making $80K to $100K a year and buying $600,000 homes at nothing down and at high interest rates. That's STUPID at any income level.
Prior to the CRA, the standing and true joke about bankers was, "If you want a loan from a bank, you have to prove to them that you DO NOT need the money!" Bankers WERE the most conservative of businessmen.
Laws with pure political intent [CRA], repealing of SOUND banking regulations, and the non-enforcement and ignoring of others, led to the housing and financial bust. ALL of which can be laid at the feet of politicians, of both parties, acting in THEIR OWN best interests, not those of the people or the nation. Politicians created the situation where Billions of dollars of 'funny money' were laying on the table. It is no surprise that people with larceny in their hearts replaced the conservative bankers. Build a bank with no locks, no safe, and no guards. IT WILL BE ROBBED--------OFTEN!