With the “mortgage crises” (in actuality only a very small percent nationwide) talked about endlessly

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with plenty of blame to go around, who do you feel is mostly to blame?

In my opinion the order would be:

1) home owner who took out a interest-only loan, two or three mortgages to buy a house they could not afford, people who had poor credit and signed up for a crazy loan with crazy terms.

2) Democratic Party who pushed for lenders to be more lenient so more people could attain “the American dream”

3) The lenders who wrote up the shady loans

what are your thoughts?

19 Comments
  1. Reply
    Sway
    May 2, 2011 at 8:08 am

    1) plain and simple, we have control over our lives and the contracts we sign. Dont buy it if you cant afford it

  2. Reply
    jakeb
    May 2, 2011 at 8:27 am

    You pretty much are correct.

  3. Reply
    shilo9i
    May 2, 2011 at 8:43 am

    I’d like you to provide some verifiable evidence to support your second point.

  4. Reply
    Anthony M
    May 2, 2011 at 9:04 am

    these lenders knew damn well they they couldn’t afford these loans.

  5. Reply
    vatoloco666
    May 2, 2011 at 9:45 am

    Give us a link for 2, please.

  6. Reply
    Michael Karafin
    May 2, 2011 at 10:07 am

    Number 2 is off. The Democrats fought Republican efforts to deregulate the mortgage industry by weakening the Community Reinvestment Act of 1977.

    Here’s the truth.

  7. Reply
    Anonymous
    May 2, 2011 at 10:20 am

    John McCain’s chief advisor on the economy, Phil Gramm, is the architect of the current mortgage crisis and people know that. He will be in charge of this nation’s economy should the unthinkable happen and McCain gets elected. McCain himself has stated he knows nothing about the economy so it would all be up to Gramm, and look where it’s gotten this country so far.

  8. Reply
    Anarchist
    May 2, 2011 at 11:07 am

    1

    You can never underestimate the stupidity of the general public

  9. Reply
    tribeca_belle
    May 2, 2011 at 11:49 am

    Bush was the one who pushed the concept of the “ownership society” and who insisted on not regulating the mortgage industry.

    Bush urged the private sector and Fannie Mae to “to unlock millions of dollars, to make it available for the purchase of a home.”

    Yours is an obvious and desperate attempt to push another Republican failure off on the Democrats.

    In addition, when the sub-prime crisis was becoming apparent well over a year ago and some Democratic legislators started calling for help for homeowners in order to help lessen this disaster, they were rebuffed by Republicans. The Republicans, instead, just wanted to blame the homeowners.

    Much of this crisis, which is now affecting nearly all homeowners, could have been averted. Instead, it has spread throughout the economy and even worldwide.

  10. Reply
    Joey
    May 2, 2011 at 11:56 am

    Now the mortgage crisis is the fault of the Democratic party? Wow, you people never cease to amaze me with the depth of your er…bul**it.

  11. Reply
    T C
    May 2, 2011 at 12:47 pm

    1) Partially true, but many first time buyers were pushed away from FHA loans they were eligible for towards higher rate loans which gave the brokers bigger commissions.

    2&3) This all occurred under Republican congress and it was a lack of (GASP) regulations which allowed brokers to enter the field who weren’t interested in quality loans, just quantity for fees. The brokers don’t finance the loans they just act as middle men with banks having the loans. Without the proper checks into lendees finances banks were often left with loans which default. Mortgages became an investment field where they were bundled and resold. No longer was the practice of issuing long term loans to the qualified at fair rates for both sides the norm.

  12. Reply
    just me
    May 2, 2011 at 1:04 pm

    Tommorrow they will announce the “Freddie Mae” is going to be bailed out OR someone is going to buy them out.
    Frannie Mae is next. You should listen and read a little more closer. Because that is the formula for:

    TROUBLE!

    NOTHING BUT SERIOUS.

    Do you know they have arrested 400 people at least concerning this SUB-PRIME MORTGAGE SCANDAL!

    THIS DID NOT JUST HAPPEN IN THE LAST 2 YEARS. THIS STARTED IN 2000. DEMOCRATS HAD NOTHING TO DO WITH IT EXCEPTE TO STOP IT!

  13. Reply
    Evalee's Mommy
    May 2, 2011 at 1:39 pm

    In most cases, the homeowner. There are people who cannot obviously help this (ie: lost jobs, death of a family member, other extenuating circumstances) but for the most part America is a money-hungry nation and we don’t care about having debt. This gets people in trouble when they buy more than they can afford and live above their means. People get mortgages where the interest rates balloon over time…BAD IDEA, but they do it anyway. Financial education needs to be taught more in high schools I think. Most of this has little to do with the state of the economy…people just bite off more than they can chew, and then they blame something else. This is NOT TRUE in all circumstances, but in the largest percentage I believe it is.

  14. Reply
    Malka M
    May 2, 2011 at 1:51 pm

    glad i didn’t buy a house here

  15. Reply
    Speedfreak
    May 2, 2011 at 2:33 pm

    Congress, as usual. Now they point the finger. How convenient. They are never accountable for the disasters from which we must constantly be bailed out at taxpayer expense. They are always a day late and a dollar short and choose too put off the inevitable resulting in the most untimely and expensive remedial actions (at taxpayer expense, of course).

  16. Reply
    smartnsavysue
    May 2, 2011 at 2:51 pm

    Responsibility a plenty to go all around. You missed the Republicans though – who oversaw this growing issue with a Congressional majority for 10+ years.

    Both parties sought to increase the % of home ownership in the US, and failed to regulate how this was being accomplished.

    And, 1/500 homes is in foreclosure. This is not small, and having so many homes in foreclosure is dropping home values for everyone. The affect is not to a small number of persons in the US – the affect is to most all of us. Any individual or corporation seeking credit is facing major barriers. The impact is more complex and far reaching than you seem to realize.

  17. Reply
    I'm Back
    May 2, 2011 at 3:03 pm

    A L L … of the above !!!

    What ever happened to taking “personal responsibility” ?

    Should a person be able to blame their IGNORANCE on someone else??

    I feel the the people that “bought into” the Variable Rate Mortgage, Zero Down, etc., scams are just as guilty as the Lenders/Mortgage Brokers.

    I feel like the Lenders/Mortgage Brokers should have their license and livelihood taken away – kind of like Bill being impeached and losing his law license.
    .

    Bush Blamers / Democrats … TRY to explain this …

    04/13/08 –
    President Bush Job Approval
    RCP Average
    Approve 31.0%
    Disapprove 65.5%
    Spread -34.5%

    Congressional Job Approval (DEMOCRATICALLY CONTROLLED) **********
    RCP Average
    Approve 22.0%
    DISAPPROVE 70.0% **********
    Spread -48.0%

    Ohhhh …
    …and I have been unable to find the “detailed” chart for this week
    … BUT … THIS WEEK … The DEMOCRATICALLY CONTROLLED CONGRESS
    … has an APPROVAL RATING of 9% … YIPPEE !!!!
    .

    Democrats have to recognize that since the 73rd Congress in 1933,
    … for a MAJORITY of THE LAST 65 YEARS,

    … Democratic Houses of Representatives and Democratic Senates have

    … CONTROLLED the nation and the President.

    A TOTAL of 38 Sessions

    … with Democrats

    … in CONTROL for 28 of those!

    WE need to inform/TELL our political representatives that WE NEED TO PASS a Constitutional Amendment for the LINE ITEM VETO.

    This will keep the SPECIAL INTEREST GARBAGE from being attached to valuable legislation.

    If Congress wants to give the president that power, they will have to pass a constitutional amendment, Supreme Justice John Paul Stevens said. “If there is to be a new procedure in which the president will play a different role in determining the text of what may become a law, such change must come not by legislation but through the amendment procedures set forth in Article V of the Constitution,” Stevens said, on June 25th, 1998.

    IF your special interest is SO valuable, why do you have to HIDE it in valuable legislation?

    So, with them REFUSING to PASS the Line Item Veto, in reality, the House and Senate have REALLY been controlling the country!!

    AND, with the CURRENT Senate and Congress having the WORST approval rating in HISTORY, hopefully we will see a LOT of changes after the general elections.
    A recent Reuters poll is out and Nancy Pelosi and Harry Reid have pulled an upset: They have managed to make George Walker Bush twice as popular as CONGRESS.

    RECENTLY – – JUST 13% of Likely Voters now say the DEMOCRATICALLY CONTROLLED Congress is doing a good or excellent job. A recent Rasmussen Reports national telephone survey found that 43% give Congress a poor rating.
    Those results represent a slight decrease from the previous month, when 15% gave Congress a good or excellent rating.

    Democrats generally believe in heavy fines for honest work, while rewarding sloth and indulgence.

    Do YOU think that people should be able to do absolutely nothing productive and get government hand-outs for sloth and indulgence – healthcare, tobacco, alcohol, drugs, STDs, etc. ??

    Do YOU want to have YOUR MONEY TAKEN from YOU and YOUR FAMILY to FINANCE these people ???
    .

  18. Reply
    unskilled idiot
    May 2, 2011 at 3:04 pm

    4) the greedy sellers who asked toooo much money for their houses. they should have asked something reasonable for their house, but they didn’t. they need to give the money back!

    those GD people took the money and ran!

  19. Reply
    ragdoll
    May 2, 2011 at 3:05 pm

    I think there is a lot of blame to go around and there are a lot of people who are ducking their heads and hoping no one finds out that they were involved. I think a number of things were also involved that created the domino effect that we are facing today.
    Take example:
    “In 1993 Barack Obama became a litigator of voting rights and employment cases with the law firm Davis, Miner, Barnhill & Galland, P.C. (a.k.a. Davis Miner), where he remains a Counsel to this day. In a 1995 case known as Buycks-Roberson v. Citibank, Obama and his fellow attorneys charged that Citibank was making too few loans to black applicants and won the case. As one commentator noted in May 2008, legal “successes” such as this were probably responsible for the sub-prime mortgage crisis of 2007. That is, banks were not loaning to blacks whose credit was poor. When the law forced them to lend money anyway, the inevitable collapse occurred. ”

    Obama fought for more loans for those who couldn’t afford them. As a result the government forced the banks to come up with imaginitive ways of awarding those loans. I believe that Obama played a small part in this catastrophy and he is not owning up to it.

    This crises was predicted a long time ago and a lot of people who should have been paying attention, let it happen any way. http://findarticles.com/p/articles/mi_m1571/is_41_15/ai_57748148

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