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Quote from Brandonf:

I have not seen anyone argue that they should have made the loan, but I could be missing something.

They should not have, and they should be held accountable for having done so. They deserve, at the very least, to lose the principle of the investment. That does not change the matter of the lady taking out the loan also being accountable for her own actions as well.

This is not a case of since one party is at fault then the other must not be. They both are.
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Given the same chance 5-6 years from now it would happen like this over and over....so who really is at fault?? You think people are like you or me ( responsible ), but as you can see around you in every corner this is not the case....People driving 60k cars who only make 25k a year living from check to check and credit card to credit card...cmon is it really twiddle dees fault?? yes, but in the end the LENDER carries 98% of the blame for giving credit to anybody

peace
 
Trader 666 honestly believes that little old lady’s and immigrants wearing AC Milan T-shirts(House of Cards by David Faber) rolled up into USA lending institution’s and demanded they be given mortgages that their current income could not afford.

Trader 666 also believes that all these “subprime borrowers” were responsible for bring down Wall Street’s elite: Bear, Lehman, AIG, Merrill etc.

Trader 666 you are the idiot.
 
ROTFLMAO!!! Do you have enough intelligence to use a toilet without supervision? Poor lady this, poor lady that... the only thing "poor lady" is a victim of is her greed in wanting to live beyond her means.

timcar = mentally defective deadbeat apologist with zero sense of personal responsibility.

What's the matter timcar, is whoever's basement you live in under foreclosure?:p
Quote from timcar:

Poor lady was fooled into believing by these “professional’s” she could. Similar to when someone is told by a doctor, lawyer, accountant, or financial advisor (aka Mr. Madoff) that this is the correct action and poor lady put her trust into these people. Someone the regulators should have been there to notice no way poor lady could afford house.

Poor lady is NOW paying a price: her credit score # is dinged due to this event and with credit standards being tighten poor lady will not be buying a house for a long while.
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Why do you think lenders are more to blame than borrowers?

On lenders vs borrowers... at the end of the day it's the borrowers who are breaking their ends of legally binding contracts, not lenders. And responsible adults should know better than a lender how much they can afford to spend... even first graders clearly understand they can't spend more money than they have. To argue otherwise brings into question adults' ability to enter into contracts in the first place.

On the bigger picture I think this goes far beyond borrowers & lenders... it's a perfect storm of greed, stupidity and irresponsibility... our culture of entitlement, pandering politicians who socialized credit, gluttonous & reckless financial institutions trying to wring every last penny from conditions, and irresponsible borrowers wanting to live beyond their means. But in the end it all revolved around giving people what they wanted... nice houses whether they could afford them or not.
Quote from Rearden Metal:

(For the record, IMO both sides are at fault here... but the lenders more so than the borrowers.)
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Quote from Trader666:

Why do you think lenders are more to blame than borrowers?
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the same way you are to blame if you leave your home DOOR WIDE open on purpose and then get robbed.... is the burglar at fault? hell yes. But who do you think your MOM is going to blame about your double headed dildo not being under your bed any more??

:p
 
Quote from Trader666:

Why do you think lenders are more to blame than borrowers?

around giving people what they wanted... nice houses whether they could afford them or not.
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simple....

Lenders had a higher obligation because they were lending with OPM....not their own money!
 
Years ago when you applied for a mortgage, the FIRST thing the banker would say is, "What do you have for collateral? After all, I'm lending other people's money and want to be sure I get paid back".

So... there were requirements like payment-to-income ratio, down payment, other collateral... or PMI as necessary. Followed by fair and honest appraisal [at least theoretically].

The questions become (1) How did we get away from making loans on sound and responsible principles, and (2) who facilitated our getting away from them?

THOSE are the people who are responsible first*. Lots of wrong-doing and scamming by many followed.... including borrowers.

The VERY first were the DemoCraps in 1999 with their Affirmative Action Lending... irresponsible social engineering in an attempt to buy votes.
 
Quote from gnome:

Years ago when you applied for a mortgage, the FIRST thing the banker would say is, "What do you have for collateral? After all, I'm lending other people's money and want to be sure I get paid back".

So... there were requirements like payment-to-income ratio, down payment, other collateral... or PMI as necessary. Followed by fair and honest appraisal [at least theoretically].

The questions become (1) How did we get away from making loans on sound and responsible principles, and (2) who facilitated our getting away from them?

THOSE are the people who are responsible first*. Lots of wrong-doing and scamming by many followed.... including borrowers.

The VERY first were the DemoCraps in 1999 with their Affirmative Action Lending... irresponsible social engineering in an attempt to buy votes.
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And before Obama's thru with the office, Dems will have at least 60% of registered American voters as a voting base due to entitlements.
 
Quote from jprad:


If the SEC had not allowed the IB's to gear up to 30:1 leverage, combined with a regulation like the above, do you honestly think that BSC, LEH and MER would have still blown up?

And how, exactly, would that have reduced my personal freedom?

[/B]
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it reduce's my freedom because if i wanted 100:1 levarge i should have the choice to get it. Goverment should not be telling me what kind of leverage I should be able to get, if i fail then oh well, file chapter 7 and start over.

However, that being said, I think the lenders should hold 50% of the blame also, and I agree that no lender would give out these type of loans if it was their money.

Probably the easiest way to prevent this again is to force the loan company to hold on to the loan for the first 5 years.
 
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