HappySqurriel on 06 October 2008
| theprof00 said: the idea was as follows. let the lenders eat these pathetic poor people who can't own a house. They didn't deserve it in the first place. Meanwhile the investors (middle and upper class) benefit. the economy basically cannibalized the low class. The rich did it for the sake of making money, and the republicans defended the right to do so by citing trikle-down economy. What is really too bad is that the really rich don't buy american. As a ratio, the american company product is almost 100%endorsed by the poor, as wealth increases it shows an inverse relationship. Basically they thought wealthy people would put money into buying ford or other american stuff even though they were investing in euros and other world products. |
I don't think that is an accurate characterization of what happened ... The mortgage and credit markets (along with the housing market) were dramatically changed in the 1990s in order to help low-income people buy homes. The problem is that the changes that were made to help poor people access credit were also taken advantage of by speculators and traditional home buyers which drove the price of homes up; eventually, a large portion of people (poor and middle class) needed the highest risk mortgages (ARMs) in order to buy any home and when the market began to fall it collapsed under its own weight.
