HappySqurriel on 05 July 2009
| Avinash_Tyagi said: You're missing the point though, it wasn't until a decade later, that most of these foolish loans started getting handed out, between 1996 and 2004, only 9% of loans given were subprime, it wasn't until 2004 to 2006 that the number jumped to 21%, if it was just the government trying to mandate expanded housing, it wouldn't have taken 12 years to happen. No the reason it happened was becuase banks got greedy, they saw that the market was charging upwards and thought that they could make big bank by betting on these high risk borrowers. The government wasn't the cause of this, it was the greedy stupidity of the banks and thinking that the market would keep going up. |
I don't think you understand how the changes to lending actually impacted the market on the whole. The changes to lending practices created an imbalance and started the largest bubble the housing market has ever seen. It wasn't until 2004 through 2006 when housing prices had risen to a level where more "Typical" home buyers were forced into sub-prime mortgages in order to qualify to buy any home.
