Quote:
Originally Posted by whell
Nah, regular shmoes who didn't allow themselves the temptation of over-reaching on mortgages they probably knew they couldn't afford while gambling on an already inflated real estate market were the ones that got hurt.
Why was the real estate market in inflated? Cheap money and a mortgage industry pressured by the Feds to make loans to folks would couldn't afford to pay them back.
Before we take another look at Glass - Steagal, let's get rid of the leftist tool that really greased the skids for this mess: the Community Reinvestment Act.
http://articles.businessinsider.com/...mortgage-rates |
One of the problems is those of us who were smart with our money and did not cause the problems are now paying for the ones who made the mess.
How can regulations that prevented calamities up to the point of removal be blamed for the fall that occurred?
The reason the loans were made was for the fees the banks were making period. As long as home prices were going up the system worked for the banks it was smooth sailing. The banks knew exactly what they were doing. Knowing all the time when it hit the fan the government would foot the bill.
Barney