damndl0ser said:
HappySqurriel said:
damndl0ser said:
The low quality loans that were issued were heavily driven by the government's desire to promote home ownership. If it wasn't for government intervention these loans would have NEVER been issued.
The Government never put a gun to my head and said take this mortgage once. I took it knowing that I could afford it and that I hadn't went in over my head. The only people that can be blamed for this problem is the bankers who in many cases turned their heads or over looked the ability of these people to pay of their mortgage because they knew it didn't matter. And the individual who knew they couldn't afford their McMansion but went ahead and bought it anyway.
Thats why there are 3 empty houses on my block alone. People were living above there means and to blame the government for trying to help people get a home is a bit retarded if you ask me. Thats their jobs, to help the every day average joe. If the bankers had been doing their part this mess would have never happend. Simple as that.
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The government may not have forced you to take the mortgage, but the government was encouraging (forcing) banks to take on mortgages of individuals who couldn’t afford them. Without the government’s involvement those 3 houses wouldn’t have been sold because the banks wouldn’t have approved the mortgage without government involvement in the system.
Here is something you can research, regardless of whether we’re talking about Fannie Mae or Freddy Mac in the United States or the CMHC in Canada, when governments get involved in the housing market to promote home ownership it has only ever created unsustainable housing bubbles that has resulted in lower affordability.
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The goverment encouraged it, but the banks regulated it. There was simply not enough safe guards put in to make sure the bankers were doing their job checking up on these people to make sure they even had a job.
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How exactly do regulators push banks to lower their lending standards to promote home ownership while at the same time forcing these banks to maintain high lending standards?
