Who is the most to blame for the financial / credit / mortgage crisis and WHY? Multiple choice -?
1) Incompetent and unethical CEOs of financial organizations close to Fannie Mae and Lehman Brothers
2) Anyone who borrowed more on a house than they could reasonably afford or lied about their income to pick up a loan.
3) Shady and greedy lenders
4) Congress for their lack of oversight of organizations approaching Fannie Mae and Freddie Mac.
5) George W. Bush
6) William J. Clinton
7) Leadership of failed banks
8) Credit Card companies
9) Alan Greenspan
10) Ben Bernanke
11) Henry Paulson
12) Jimmy Carter (this one is a practical joke, I think, it is not the 80's)
13) [Fill in your own answer]
Answers:
My answer is 1-3 and 7
1.
3.
4.
5.
6.
7.
8.
9.
10.
11.
13) All of the above including you and me, except #8, #12 possibly.
Why?
13) You & I and other Americans
- elected the current and past representatives (see below)
-borrow more than we save
-bought into the get-rich-quick authentic estate boom
-continue to demand more from gov't, but don't want to pay
4) and 6) for pushing Fannie and Freddie to expand home ownership, especially to those who weren't qualified
2) for buying homes for which they're not qualified, or speculative investing, or willfully joining shady lenders within their game
3) for knowing better and exercising no ethical judgment something like the consequences to their clients or to society in general
7) for pushing #3 for increased sale volume even as the market began to slow contained by mid-2003
9) Alan Greenspan and the Federal Reserve Board for keeping interest rates too low even as the economy improved. Greenspan even praised ARMs within testimony before Congress.
1) Fannie/Freddie for buying such loans, questionable (illegal) accounting practices
1) Financial ratings agencies (Ambac, MBIA) for failing to properly rate the risk contained by mortgage-backed securities. Goldman, Lehman et al for pushing these investments without explaining or understanding the risk. Insurance companies, beat about the bush funds, investment houses for buying these MBS, CDO and other instruments without properly assessing the underlying risk.
5), 10) and 11) because the sh!+ has hit the devotee on their watch, and their only solution is for the taxpayers to fork over $700BILLION, trying to knock against the bill through Congress, and including language in the bill that say: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Not with my money, you don't.
It have to be 3 half these people that get foreclosed were given loans that they could initially pay but afterwards the interest rate was jacked up and they could no longer afford to pay the mortgage. While this information be in the loan agreement the lenders would only hold to loan the money based on the initial interest rate so they would have nation come in that the knew would not be capable of afford the mortgage when the interest rate went up and they still would lend to them because they make money sour of getting the loans it doesn't matter to them if their company/boss got screwed most of these empire got promotions and bonuses because they were getting so plentiful loans
Related Questions:
Mortgage loan, incredibly suitable credit but no income confirmation proof?
looking to get home loan, my relative has both excellent credit evaluation of 790 and has income of about $ 2100 monthly and my relative have documents like pay checks and levy return documents to prove his income. I myself too...
2) Anyone who borrowed more on a house than they could reasonably afford or lied about their income to pick up a loan.
3) Shady and greedy lenders
4) Congress for their lack of oversight of organizations approaching Fannie Mae and Freddie Mac.
5) George W. Bush
6) William J. Clinton
7) Leadership of failed banks
8) Credit Card companies
9) Alan Greenspan
10) Ben Bernanke
11) Henry Paulson
12) Jimmy Carter (this one is a practical joke, I think, it is not the 80's)
13) [Fill in your own answer]
Answers:
My answer is 1-3 and 7
1.
3.
4.
5.
6.
7.
8.
9.
10.
11.
13) All of the above including you and me, except #8, #12 possibly.
Why?
13) You & I and other Americans
- elected the current and past representatives (see below)
-borrow more than we save
-bought into the get-rich-quick authentic estate boom
-continue to demand more from gov't, but don't want to pay
4) and 6) for pushing Fannie and Freddie to expand home ownership, especially to those who weren't qualified
2) for buying homes for which they're not qualified, or speculative investing, or willfully joining shady lenders within their game
3) for knowing better and exercising no ethical judgment something like the consequences to their clients or to society in general
7) for pushing #3 for increased sale volume even as the market began to slow contained by mid-2003
9) Alan Greenspan and the Federal Reserve Board for keeping interest rates too low even as the economy improved. Greenspan even praised ARMs within testimony before Congress.
1) Fannie/Freddie for buying such loans, questionable (illegal) accounting practices
1) Financial ratings agencies (Ambac, MBIA) for failing to properly rate the risk contained by mortgage-backed securities. Goldman, Lehman et al for pushing these investments without explaining or understanding the risk. Insurance companies, beat about the bush funds, investment houses for buying these MBS, CDO and other instruments without properly assessing the underlying risk.
5), 10) and 11) because the sh!+ has hit the devotee on their watch, and their only solution is for the taxpayers to fork over $700BILLION, trying to knock against the bill through Congress, and including language in the bill that say: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Not with my money, you don't.
It have to be 3 half these people that get foreclosed were given loans that they could initially pay but afterwards the interest rate was jacked up and they could no longer afford to pay the mortgage. While this information be in the loan agreement the lenders would only hold to loan the money based on the initial interest rate so they would have nation come in that the knew would not be capable of afford the mortgage when the interest rate went up and they still would lend to them because they make money sour of getting the loans it doesn't matter to them if their company/boss got screwed most of these empire got promotions and bonuses because they were getting so plentiful loans
Related Questions:
Mortgage loan, incredibly suitable credit but no income confirmation proof?
looking to get home loan, my relative has both excellent credit evaluation of 790 and has income of about $ 2100 monthly and my relative have documents like pay checks and levy return documents to prove his income. I myself too...