Right around this time is when Gruss would remind us all that sub-prime mortgages were only a small part of the problem....
He used to annoy the piss out of me at times, but I miss Gruss. On Mon, Oct 18, 2010 at 12:13 PM, Robert Munn <[email protected]> wrote: > > On Mon, Oct 18, 2010 at 8:49 AM, Vivec <[email protected]> wrote: > >> >> Where are you getting your information that these corporations were >> 'Forced' into creating this financial crisis? >> Are you implying that they bear no responsibility at all in this? >> > > We have covered this before. Time warp back a few years. Democrats scolded > Fannie and Freddie for not working harder to deliver the dream of home > ownership to millions of people who he felt deserved to have the American > dream - economics be damned. He forced them to lower their standards and > take on many more sub-prime mortgages in pursuit of this policy goal. Fannie > and Freddie, backed by the American taxpayer, complied. A combination of > this policy and the availability of cheap money sent sales soaring, creating > the housing bubble. > > Banks saw the flood of easy money and figured they had to jump on the > bandwagon or miss out on the profits. You can't blame them for doing what > comes naturally to them - trying to maximize shareholder returns. Do they > bear any responsibility for the mess? Sure. Like everyone else, they got > caught up in the craze and failed to see the fiscal crash they were headed > toward. They generated so many bad loans in the sub-prime market that they > put their core businesses in jeopardy of failure. > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:329305 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
