dw57

Cramming Down - On Whom?

not sure i buy that all of these folks were living beyond their means. and if they were , why didn't the mortgage brokers no make the contracts since they knew they wouldn't be able to afford it. and the old saw the government made me do it, doesn't cut. the vast majority of these contracts were written by brokers, not subject to CRA or much of any other laws. and some states were licensing brokers who had criminal records. even for robbery.



On Jan 09 12:49 PM prudentinvestor wrote:

> The problem is that when the banks lose, savers and taxpayers are
> forced to fund their losses, either via below-inflation rates (ZIRP)
> for savers, or via increased taxes to pay for TARP, TALF, and their
> certain sequels.
>
> So, at the end of the day, it is savers and taxpayers who are penalized
> to allow imprudent people to live beyond their means.