richardhutnik said:
When stupid misuse of derivatives were a big factor in what happened with the economy, complete with the production of an unsustainable bubble, then it gets brought up. You are the one who ended up saying, "Well if the government had no part in it, we wouldn't of had a problem". Well, it wasn't the government that pushed things over the edge, but greed on the part of individuals to take too large of a risk. Beyond this, the key is to look at what really could lead to sustainable job creation, not creating another bubble that will lead to excess economic activity that is not sustainable. Besides this, name what area should be the target of real economic growth now to produce the needed jobs over the next 5 years. |
The government played a massive role in the creation of the crisis ...
Starting decades before the housing bubble burst, the government has been pushing banks to loosen lending standards to increase home ownership in poor minority groups through a variety of means; including legislation, litigation, and buying these undesireable mortagages through Freddie Mac and Fannie Mae. To minimize their exposure to these very low quality "assets" the banks created new derivatives and exotic mortgages.
Realistically, if it wasn't for government action people would probably still need 10% to 25% as a down payment, an excellent credit score, low debt, and a stable job to get a mortgage with a 25 year amortization period that could account for no more than 40% of their take home pay.
