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Showing posts from March, 2009

Who's Responsible For The Mortgage Crisis?

OK, there is an awful lot of finger-pointing regarding who is responsible for this mortgage meltdown. The Democrats are blaming the Republicans for loosening up bank/finance regulations. The Republicans are blaming the Democrats for encouraging the sub-prime mortgage market (loaning to people who wouldn't ordinarily qualify for a mortgage). Lots of other people are blaming the CEO of the large financial institutions for being so greedy. It's funny but everybody has somebody to blame but nobody blames themselves.

In my opinion, there are many factors that contributed to the issue. Decreased regulation made it easier to get away with some questionable actions. Encouraging the sub-prime market got banks to loan to people they normally wouldn't loan to (the same people that are defaulting left and right). However, even with all of that, it comes down to one thing: greed.

It seems that everybody is after easy money. Buy a house you can't afford and, in a couple months…