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The Poor are to Blame for the Housing/Financial Crisis - Not

blog.poweropt.com — Much of the focus of the country’s economic problems has been on the burst of the housing market’s bubble and the related credit crisis. While this focus is appropriate, the foreclosure rate has hit a record level and these problems are frequently blamed on “the poor.” However, much of the data shows that this is not the case.

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  • necoates, on 11/21/2008, -1/+2People that had no business taking out loans that they could not pay in the future where somewhat the cause of much of this. But the magnitude of the problem is caused by the Trillions in cash default swap bets that wall street made on these people.

  • JuliaXV, on 11/22/2008, -0/+1Blame high prices and interest rates

    Blame the way mortgages are amortized. Buying a home in the late 70s for 35,00-40,000 you ended up paying back over 100,000

    What kind of crap is that?
  • Barackalypse, on 11/22/2008, -1/+2Who's blaming the poor, I'm blaming the Democrats (and ignorant borrowers), read what they have to say about Bush's 2003 proposal for more oversight over Fannie Mae:
    ''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
    http://query.nytimes.com/gst/fullpage.html?res=9E0 ...

    I don't know about Barney Frank, but I'd be embarrassed that Bush spotted a problem before I did. Or course, Frank was also having a relationship with an executive from Fannie Mae (an entity that his Committee is responsible for oversight on, a clear conflict of interest), so maybe it was more than just desire for affordable housing that clouded his judgment. Also, the real issue here is the type of loan, defaults on sub-prime loans are higher across all income ranges than prime loans.
  • inactive, on 11/22/2008, -1/+1Let's put ALL the theories to the test...

    Hears and innovative thought :
    Since lying today started as the sun came up,
    we'll begin our new rule tomorrow.

    ALL LYING STOPS TOMORROW !

    That means no half truths or wishful thinking,
    only speak knowing the absolute truth !
    Just how different and or quiet will tomorrow be ?

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