Why Did The Housing Crash Happen?

Forum: Politics Page 2 of 2  1 2  
Author: [Politics] Topic: Why Did The Housing Crash Happen?
djbrow PM djbrow
Joined: Feb 2004
Posts: 14418
 
djbrow
Participation Meter
Covers Linesmen
Posted: 3/20/2012 8:34:01 PM
QUOTE Originally Posted by promark12:

OK, but why did the banks go ahead and make house loans to people they had to know wouldn't be able to afford the payments?  Who approved all this?

Who approved it? You and I...by electing politicians who knew about the house of cards but also knew that blowing it down would create a prolonged recession.

As goes housing goes the economy. You reduce borrowing power, you reduce spending, and on and on we go. No one wants to be that politician in charge when it comes to fruition.

That's why I laugh when people blame dems or repubs. This is one area where the letter beside the name didn't/doesn't matter.

promark12 PM promark12
Joined: Dec 2011
Posts: 1627
 
promark12
Participation Meter
Veteran
Posted: 3/20/2012 9:01:48 PM

That's what I was trying to get at.  DJ, I agree with you.  I really feel that this whole episode was an attempt to bring our economy down.

Was there congressional hearings on this?  Not that they would find any of THEM guilty.  We know how that goes.

djbrow PM djbrow
Joined: Feb 2004
Posts: 14418
 
djbrow
Participation Meter
Covers Linesmen
Posted: 3/20/2012 9:14:20 PM
QUOTE Originally Posted by promark12:

That's what I was trying to get at.  DJ, I agree with you.  I really feel that this whole episode was an attempt to bring our economy down.

Was there congressional hearings on this?  Not that they would find any of THEM guilty.  We know how that goes.

It wasn't an attempt to bring our economy down. You alluded to this earlier and your point is not grounded in fact. The government does not become owners in the property.

If a CEO and his/her mangament who live a lavish lifestyle and wish to remain in charge engage in actions that solely benefit the business temporarily at the expense of long term health, it hardly means that failure was the ultimate goal.

thirdperson PM thirdperson
Joined: Feb 2005
Posts: 1641
 
thirdperson
Participation Meter
Veteran
Posted: 3/22/2012 11:58:57 PM
Human GREED caused the housing crisis in USA.  Greedy banks willing to make risky loans to greedy borrowers who cannot afford to pay.  However in Canada, there was no housing crisis because of tougher regulations and prudent banks careful in lending.
be easy PM be easy
Joined: Oct 2006
Posts: 15420
 
be easy
Participation Meter
MVP
Posted: 3/23/2012 12:08:54 AM
QUOTE Originally Posted by djbrow:

Who approved it? You and I...by electing politicians who knew about the house of cards but also knew that blowing it down would create a prolonged recession.

As goes housing goes the economy. You reduce borrowing power, you reduce spending, and on and on we go. No one wants to be that politician in charge when it comes to fruition.

That's why I laugh when people blame dems or repubs. This is one area where the letter beside the name didn't/doesn't matter.



So what you are saying, is that economies are based on people assuming ever growing amounts of debt, secured by real estate? Stick to your nursery rhymes, you clearly don't understand the way things work here.

You want house prices higher, so that people can borrow more money, because you believe that is what makes an economy work. No wonder you voted for Bush twice

The reason the economy is broken, is BECAUSE of people levering RE to the hilt. Eventually, we reach a point where people cannot afford to service this ever growing debt that you want to see everyone shackled to. At this point, the entire system is bankrupt, it collapses, the books are wiped clean and we start again. Have you looked out your window lately?

Economies consist of people producing and consuming stuff, via trade. People borrowing a garbage ton of 'money' against their shelter, does nothing to help economic activity. Actually, it is what kills the cat.  Lower housing costs are a net positive to the economy, because it makes everyone in the economic system, wealthier. Higher housing costs conversely make everyone poorer


Topic: Why Did The Housing Crash Happen?

this is the wrong question to ask. Ask yourself, Why did the housing Bubble happen,,,,,,,,,,the crash was merely the inevitable result of the bubble
djbrow PM djbrow
Joined: Feb 2004
Posts: 14418
 
djbrow
Participation Meter
Covers Linesmen
Posted: 3/23/2012 9:44:12 AM
QUOTE

Originally Posted by be easy:



So what you are saying, is that economies are based on people assuming ever growing amounts of debt, secured by real estate? Stick to your nursery rhymes, you clearly don't understand the way things work here.

You want house prices higher, so that people can borrow more money, because you believe that is what makes an economy work.


You understand I never said that.

I said you reduce people's borrowing power, you reduce spending. That doesn't mean that the antithesis is to artifically inflate an asset.

promark12 PM promark12
Joined: Dec 2011
Posts: 1627
 
promark12
Participation Meter
Veteran
Posted: 3/23/2012 10:40:58 AM

Ive never voted Republican in my life!  But the housing crash wiped out mass amounts of wealth.  Those who did make down payments plus a few payments then got forclosed lost a lot.  Those who made payments paid into a house that eventually became worth less than they paid for.

When a house becomes forclosed, the person who bought it DOESN'T OWN IT ANYMORE. 

That's what this government wants.  They want a pool of renters, not home owners.

Forum: Politics Page 2 of 2  1 2  
You have entered the forum as a GUEST. 
You must login/register to post or reply.