Quote Originally Posted by BanginJimmy
I agree with both of you. The banks were not using good business practices by balancing risk and reward. They are not at the heart of the fault though. That falls first on the people that bought houses they couldnt afford, then second on the govt for forcing banks to give loans to these people that shouldnt have qualified to start with.
the banks made it easy to go overboard on your credit. i used to recieve dozens of offers a week saying, "Buy that new big TV"" etc etc. and no matter what you spent they sent a low interest check saying," ehy it's ok, use it for cash or whatever, even crack rock or meth". There were savings and loan scandals in the 80's i think under bush sr, and the card companies and mortgage companie has legislature written to "help them even more" and deregulate the mortgage business. i was a loan officer and had seen people less than a year out of bankruptcy buy a 300,000 house on a no doc loan, which provides no proof of income and employment verification. as you know the bankruptcy laws were changed in 05 so the companies could decide if you made to much money to go ch.7, instead you are put on a mandatory payment plan. as long as they were getting rich at the time it was ok, but now they are showing losses and i hear bank of america was suponead today about business deals after recieving tarp money.