Who's fault is subprime.............
- Thread starter flytiger
- Start date
For what it is worth, I completely agree. I personally feel that the primary responsibility belongs to the lenders. Nobody can get a mortgage unless a lender a) has an appropriate product and b) specifically approves each individual borrower.
Some lenders have deliberately structured products that for various reasons ignore poor credit, do not verify income, etc. A good analogy is actually credit card companies - it is amazing sometimes when you see how willing they are to lend money to a client that is already clearly maxed out with other revolving credit.
Seems to me that this is a bit like Enron only on a massive scale. Obviously the creators of these cdo's had the smarts to develop a "marketable" security, the dangers of which were missed by auditors, regulators and others in the industry.
Perhaps the real question is why the market in these securities were allowed to become so huge without being traded on an open market. I doubt that folks would have had the experience of waking up to a balance sheet with overvalued, illiquid assets to an extent which threatened their ability to operate as a going concern.
Perhaps the real question is why the market in these securities were allowed to become so huge without being traded on an open market. I doubt that folks would have had the experience of waking up to a balance sheet with overvalued, illiquid assets to an extent which threatened their ability to operate as a going concern.
Who is at fault? Most all of congress dating back 10-15 years minimum. Most connected with any aspect of the mortgage industry, right down to the appraiser that knew he/she was inflating the value of homes just to appease the bank. The scumbag telemarketers that preyed on those in the sub prime market. Activist, radical left groups like Acorn that brought legal pressure on mortgage companies to make loans to those that had little or no means to repay the loans. CNBC and the like who allowed the pump and dump to go unchecked. And finally, a good percentage of John Q public and his lovely wife Susie Q that lived beyond their means.