dw57

The Long, Steep Road Ahead - to Capitalism

not sure why the mortgage brokers and their pets keep wanting to bring in FANNIE and FREDDIE into this discussion other than as a way to shift the blame for their own misdeeds. They are collaborators at best. they don't write the notes, lenders do. All they do is buy them. They don't force any body to write NINJA notes. Lenders do that on their own. Their biggest contribution was changing their standards for what they would buy. And that they can be blamed for as being stupid. But then in that time, all sorts of investors (AKA suckers) bought these notes. If you want one thing to blame above all else, blame the collapsing wages. Had that not happened, maybe the really big notes might not have happened. Then again it might have been worse. But that at least would have had a chance to keep house prices up, as it is, they have a long way to go. while we can try to blame the new home owners they by them selves couldn't do this, but they were collectivized to do so (its the American dream to own your own home right? not that every one should but thats not what is advertised is it?) . and it wouldn't have happened at all if the rules for writing these notes hadn't been reduced to suggestions at best, and ignored for the most part. so if you want to blame some one, it would appear that only two groups could actually do this by them selves. That would be the mortgage originators, and those that bought the notes. Take those two groups out of this picture, and we don't have this mess. One group (originators) had stupid rules for how they get paid. The others assumed that houses could only go up. both were really stupid.