Skip to main content

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, flip it for huge profit. Get a loan you can't afford and, before it adjusts, refinance for a better rate (because your home will be worth twice as much... right?). How many people fell into that trap? Of course, it's not just the consumers. There was greed on every level. Mortgage brokers who signed people up for loans they knew were unaffordable because they could just load it into a mortgage backed security and not have to worry about it anymore. The banks who  sold the securities to investors. There was massive amounts of greed at all levels.

What ever happened to doing the right thing? Not in this country any more. Now it seems to be do whatever gets you the most right now. It doesn't matter if it hurts somebody down the road. It is a sad, sad world when most people seem to care far more for their own wants (not needs, wants) than for other people. Whatever happened to honesty and integrity. I'm convinced that those two traits would have prevented the housing crisis.

Yes, there is plenty of blame to go around, but we miss the largest culprit of all. The me first, foremost, and above all else mentality that seems to describe an astonishingly large number of Americans. Now, of course there are plenty of people who are simply victims of circumstance (and the press loves to do segments on them) but for the most part, we're victims of our own greed.

Maybe we're not as cool as we think we are...

Comments

AmyLu said…
Greed -- you might say that is the ultimate source of a lot of our country's economic problems, from the national debt to the mortgage crisis.
Jeff said…
So easy to identify but so difficult to control.
It is interesting that the Constitution does not demand individual integrity, only individual freedom, with governmental checks and balances to hopefully control factions. Who ever wrote the Federalist papers saw this loophole but knew that true freedom was unattainable without it. Greed, therefore, can only be ultimately controlled on an individual level. If all divisions of government have succumbed to greed and if the citizens allow it, then the Constitution has no power to make it right. What do you think?
Jeff said…
You're right about the Constitution. It creates a balanced and free country but it relies on individual integrity to protect those freedoms. Greed can be the downfall of any nation. In fact, a wise man once said that a democracy can only last until people realize they can vote themselves money. I think we may be getting to that point.
wow..I have been thinking about this economy and really greed comes from pride. Feeling we are better than others or selfish or that we don't need God, that we think we know better than He who created all! Another evidence how the Book of Mormon is really for our time-the pride cycle is repeated over and over in the Nephite history. I don't think we really will be free as individuals until we have unity. First with Christ and then united with one another. I am amazed at how smart God is!
hey jeff,
my wife always tells me how awesome your blog is so i thought i would check it out. you're totally right with few exceptions greed or wanting something that you can't afford is the problem. its interesting that "they" can get you to afford anything, but in this case they really couldn't afford thier morgages and had to deal with the problem that they brought upon themselves. I was thinking the other day about how everyone almost everyone is in debt. from the people all the way through state and local gov't and the national government is the worst 9 trillion please, what a bad example. i shows me how important it is to live within your means for a family business or a country.
Jeff said…
I'm glad you guys are enjoying it. Sometimes it feels like I'm blogging into thin air. The whole point of my blog has been to let me express my ideas and open them up for comment. Some of the best ideas in my head have sounded pretty lame when I wrote them down (I don't post those ones). It's nice to get positive feedback for what I think are my good ideas.

As for your thoughts on debt, I couldn't agree more. Debt will take your freedom away just as much as an addiction or crime. If we don't control it, it will control us.

Popular posts from this blog

Insteon: Controller vs Responder

This entry is going to be more of a technical article.  If you're not planning on setting up scenes in an Insteon environment, this isn't for you.  If you are or like me, have been running into some confusion about what should be set up as a controller, what should be a responder, and what should be both.  Here's what I learned.

I've been using Insteon switches for a couple of years now and had set up a few scenes.  When adding a switch to a scene, you have the option of adding it as a controller, a responder, or both.  Not knowing the difference and wanting to cover my bases, I set all of my scenes to both.  Since my scenes were all timing type scenes (e.g. turn on night lights at sunset) it worked fine.  Then I added an 8 button keypad and started programming the buttons to control other lights.  The program for this, of course, is a scene.  Once again, I set every switch and button as both a controller and a responder.  Then I created a scene, specifically for my E…

Michelangelo

I just finished reading The Agony and the Ecstasy by Irving Stone. It's a biographical novel of Michelangelo (you know, the famous sculptor/artist whose statue of David and the paintings in the Cistine Chapel are super famous) that gives a very interesting view of his life. It seems that while Michelangelo had a very productive life, it wasn't a very happy one.

One of the first things that I noticed about Stone's portrayel of Michelangelo is that he was obsessed with creating sculptures and a true perfectionist. For a large portion of his life (into his 60s it seems) his every action was calculated toward a goal of sculpting marble - either getting a commission or improving his talent (or both). Not only did he want to sculpt, he wanted his pieces to be as real as possible.

His obsession with carving perfect sculptures drove him to do endless studies of the human form. He even spent months sneaking into a morgue to dissect bodies so he could figure out how the body real…

Insteon Hub - The Achilles Heel of Insteon

A couple of weeks before Christmas, my Insteon hub died.  There were no pyrotechnics or alarms and to the disappointment of the TV generation, nothing exploded and no people were thrown across the room.  What did happen is that I tried to turn on some lights with my Amazon Echo and it told me that it couldn't connect to the Insteon hub.  That's weird - so I took a look at it.

The Insteon hub is a plain, white, square device with a single light on the front that is green when all is well and red when there's a problem (usually a network issue).  I looked at the hub and the light was off.  That's new.  I unplugged it and plugged it back in.  Nothing.  I hit the reset button (which I had never before used).  Nothing.  It was dead as a doornail.

This was quite a surprise.  My hub had served me well for over two years.  Even worse, the two year warranty had expired a couple of months before.  Bother!

However, all was not lost.  All of my Insteon switches still worked.  All…