Jane

Blame Realtors, Brokers and Bankers - Not Greenspan

In my excitement, I forgot to add that the bailouts seem to punish responsible consumers who didn't take part in the bubble at all. And it wasn't as if there were no warnings for anyone doing even a modicum of research, whether they were home buyers or industry insiders or working for the govt. Consumer org's and others have been warning about these impending problems, mortgage fraud, etc, for years before the "crash." That no one listened, especially those in a position to stop it, tells me that there was no INTENT to listen to warnings, use common sense, or use ethics. The intent, therefore, seems to have been to make as much money as quickly as possible at others' expense, even if it was illegal, even if it damaged the U.S. economy. While I don't condone any consumers taking part in that at least some of them were truly deceieved or ignorant. The industry and govt can never claim that as their excuse.

Blame Realtors, Brokers and Bankers - Not Greenspan

One thing I've noticed in all the finger pointing: consumers, who have the least experience, training, expertise, or resources to have complex financial knowledge or do in-depth research, are told that they "didn't do their homework" before buying...but the industry insiders, investors, govt, etc, somehow failed to do THEIR homework.

Do they mean to tell me that people in lending had "no idea" that risky loans would default, or that massive defaults would hurt the economy? They had "no idea" that selling worthless loans as investments would have bad consequences? For that matter, did investors do real research? Or did they just rely on the industry itself for that research, (a mistake any homebuyer with a builder dispute or lender dispute would be chastised for making)? Who in their right mind would buy these loans when consumer complaints were commonly found online about builders and lenders deceiving borrowers into using toxic loan products? Didn't banks who lent builders money bother to check their financial health first? how could Greenspan "not have seen it coming?" Either the man is a liar or a moron. Why did law enforcement look the other way when consumers reported the mortgage fraud of builder F. Jeffrey Miller in KS and MO in the 90s? He's now been indicted, but the homeowners will get nothing. This was preventable with Miller as it was with thousands of others doing the same things.

If anyone is to blame for this mess it's anyone in the industry/govt who had anything to do with the unwise, unethical, and sometimes illegal practices that led to this, and with looking the other way instead of stepping up to the plate. If anyone in the industry abstained from these things, good for them...they'll probably survive this "crisis." Let the companies that were irresponsible go under. These bailouts being proposed aren't for homeowners. They're for the industry. When consumers who think help is coming figure that out, then we'll see even more just walk away from their houses.