
Originally Posted by
tony
I originally had the position you did, trust me I see what you are saying but I spoke with my sister at length about this, she is really intelligent on the subject. ARM's were tailored for residents of California where a conventional mortgage was not financially viable. Of course this caught on and even Alan Greenspan himself endorsed the ARM.
I have a 7 year ARM on my house and had an interest online loan on an investment I had.. I am one of the more educated home buyers but the average person just doesn't understand the legal talk in purchasing a house. Emotion gets involved, they hear they are approved for the house of their dreams and voila.. deal done and someone has more responsibility than they can handle.
I'm not saying the government should bail them out, there is a lesson to be learned here but certainly the role of the government is to make sure the market is fair, and that there are fair lending practices... I'm sorry but that did not go on.