Comments on: Democrats blocked reform of Freddie and Fannie; Received most money from Freddie and Fannie

By: Marty

Marty — Mon, 06 Oct 2008 01:50:23 +0000

I hear what you’re saying, but am finding that “greed” is frequently being used as a safe and anonymous scapegoat. Blaming “greed” itself a useless excercise. I’d like to know the names of the greedy people who are actually to blame.

By: concerned

concerned — Sun, 05 Oct 2008 20:48:47 +0000

Marty,
The greed aspect of this is wanting the increase to continue at an unsustainable level while some are being used unfairly to maintain this increase.

By: Marty

Marty — Sun, 05 Oct 2008 17:14:06 +0000

Greed: Hoping the mutual funds in your 401k increase, not decrease in value, and the companies contained therin doing everything legally possible to accomdate your wishes.
Yep. It’s all my fault. Me and my greedy $24,000 401k.

By: Genna

Genna — Sun, 05 Oct 2008 05:36:47 +0000

Let’s face it; the blame rests with many. When someone makes $30,000, annually, they should know that they can’t afford to buy a $300,000 home. When you lie about your income or assets on a loan application, it’s not the fault of Congress. When people charge extravagant items on their credit cards that they can’t afford to pay, it’s not the fault of Congress. However, the Repubs could have pushed regulatory legislation through if they thought this was a very sever eproblem. And Dems could have agreed with their proposed legislation. But, in light of the fact that the Repubs controlled Congress for years before the Dems took over 18 months ago, I have to say that to blame Democrats for this fiasco is simply unfair.

By: mary

mary — Sun, 28 Sep 2008 23:37:53 +0000

I was hoping that people would pcik up on some of the nuances that created this mess – so as to avoid it. But if greed is the part you understood, that’s good, too.

By: Jayhuck

Jayhuck — Sun, 28 Sep 2008 08:40:39 +0000

“This is plain and simple greed at it’s worst. ”
Thanks Mary – very true!!!!

By: mary

mary — Sun, 28 Sep 2008 07:37:14 +0000

We can blame everyone involved. Those who required that sub-prime loans be made (btw – the lender on the money had a choice as to how that sub-prime loan would be under written), blame the the money changers who demanded a high return, blame the banks who hired the loan officers who made it part of their job requirement to sell certain loans (incentivized lending), blame the brokers who sold neg am loans with HUGE yield spreads (more incentive to sell those loans to an uneducated buyer) and blame the the consumer who believed every word their loan officer said.
I feel sorry that we are asked to trust others, put trust in others who supposedly have more experience but are as corrupt as the worst etc…
This is plain and simple greed at it’s worst. Legal folks saw an opportunity, lenders saw an opportunity, consumers saw an opportunity and no one heeded the advice of conservative financiers – who btw, lost their influence or jobs when the media reported what they said. People were told by their superiors to report to the media a story of good tidings or else – go somewhere else to work. And when the hard times started to roll, it made it even more necessary for those folks to keep the media machine smiling in the hopes that panic would not set in and stall the little dribbling in.
The people who have lost their homes to foreclosure are not really to blame. They did not know and many, many were lied to. The experts (the loan officer, the broker etc…) at the lowest levels should have warned people (have them sign a tangible benefits paper) advise them to read the note and explain the note to them in full, and if need be – sign something that states there is a risk associated with adjustable loans, the market value of real estate can increase or decrease, the future of incomes can increase or decrease affecting the ability to pay a loan back, and the the unforeseen economic dynamics.
Everyone wanted on the bandwagon and wanted to go down to the neghborhood meeting place, – bar, church, park or wherever and brag about their new home, car, furniture, vacation etc…
It’s not anyone person’s or institution’s fault. It is the incentivized payment plans that directors, brokers, loan officers, etc… worked for. It is the mob mentality of wealth and extravagance that glittered in everyone’s face that blinded many usually risk averse investors.
Some held back, or did not over buy. But not most.

By: Jayhuck

Jayhuck — Sat, 27 Sep 2008 23:44:36 +0000

Sure we can – I, like Ken, however, am getting pretty tired of each side working so hard to blame the other – such a political game. Its just wearing thin at this point. Each side has plenty to blame the other for and no one is going to win if we don’t get past this.

By: Warren

Warren — Sat, 27 Sep 2008 23:38:45 +0000

We can blame the govt for requiring lenders to make subprime loans.

By: Jayhuck

Jayhuck — Sat, 27 Sep 2008 23:19:37 +0000

Drowssap –
You’re sending us mixed messages – in one sentence you blame the Dems for too lax regulations and in another sentence you blame congress for messing with the free market