Systemic Failure

[britty 1]

Banks were morally pressured by politicians into making home loans to folks who could not remotely qualify under standards set by decades of experience with mortgage defaults.

There are the politicians who bullied banks into making loans the banks knew were bad to begin with and would never have made without threats or the promise of political favors.

exactly. If you can't afford it, you shouldn't be able to purchase a home. The government is to blame for this mess by opening home ownership to those who simply couldn't afford it, and weren't likely to afford it in the future.

[Niels Bohr 72]

Banks were morally pressured by politicians into making home loans to folks who could not remotely qualify under standards set by decades of experience with mortgage defaults.

There are the politicians who bullied banks into making loans the banks knew were bad to begin with and would never have made without threats or the promise of political favors.

exactly. If you can't afford it, you shouldn't be able to purchase a home. The government is to blame for this mess by opening home ownership to those who simply couldn't afford it, and weren't likely to afford it in the future.

Who lobbied for loose regulations, the banks or politicians?

Report from WSJ

[NickD 203]

From the bankers I know, morally pressured is stupid to them. But if a bank can make a quick buck by selling a loan, that is a different story, their money is protected. And if an investment firm is dumb enough to buy those loans without checking out either the property nor the qualifications of the borrower, that is their fault.

But why am I paying for this? If I am stupid with my money, certainly don't have Uncle Sam to bail me out. But do have Uncle Sam to take away everything I own if that money I lost was needed to pay him taxes, and even be in debt to him if what I have left cannot payoff the balance due. No mercy from the IRS.