467,000 more jobs lost in June.

[Avinash_Tyagi]

TheRealMafoo said:

Avinash_Tyagi said:
But that isn't what caused the problems with the banks mafoo, it was the banks own reckless behavior that cause their problems. You're trying to blame the government for the stupidity of the banks. Clinton wasn't even in office when the banks started doing things like handing out Ninja loans.

I am not blaming Clinton, I am blaming government. Clinton got the ball rolling, but every congress over the last 10 years is to blame as much. With more blame over the last 5-6 years, because they were warned this was going to happen.

And there was no "Ninja loans". Every loan was legal, and incentivized by the government.

Banks didn't fail because they gave bad loans. They failed because they were told that these loans would be guaranteed by the government, and giving them carried no risk. The government then could not make good on that promise, so expected revenue didn't come in.

The solution all along was simple. Stop give banks breaks for sub prime lending, and they would stop giving out loans that were bad investments. The problem is, doing so would be viewed as not being sympathetic to the poor.

In the long run, it didn't seem to do the poor any favors, did it?

 

Again you're blaming government for the stupidity of the bank during the last few years banks were giving loans to people with no income and no collateral, no jobs whatsoever, this was their own stupdity in action.  You don't give someone a 300K loan when they have no income or collateral or anythign to cover the loan, its just common sense.

I mean when I bought my car, I needed 5 grand in a loan, and the credit union I went to made sure I was making enough money, had collaterl and a cosigner before I got the loan, and it was only five grand.  That's how a bank should act when loaning out money.