Paul Thomas, CPA wrote:
"St Georges Day April 23rd" wrote
The people in charge of these banks which did this should be killed
and their property confiscated to pay off any debt.


Now slow down sparkey. These lenders didn't go out, waylay some poor scmuck
on the street and force them to take out a loan they couldn't support.

I don't really disagree with you, but...

There's some evidence that as much as one quarter of all subprime loans
could have been financed otherwise. In that respect at least some of
these smucks were waylaid. There was also the implication that they
could refinance after their property had appreciated.

It took at least two to create the problem. Lender and borrower. Greedy
lenders. Greedy borrowers.

Oh it goes beyond that. When you make CDOs of that debt it became
easy for the bond rating agencies to never really look into that complex
mess and just do what those who hired them wanted. All everyone wanted
was to drive this foolish easy money/ easy profit market.

The real failure, IMHO, is that the regulators did exactly what the
sharks wanted. Not what was good for them or the country but what they
wanted. That permissiveness is a hallmark of this era.

Jeff




This is the only true way to handle these on-going bank frauds and
stock market swindles.



And the folks who said they had income sufficient to repay the debt? I
doubt that there is just one no-doc loan that contains a tad of expectations
and puffery on the application filled out by the borrower. Nope, not just
one for sure. In fact, I'd be surprised if there were one that didn't
contain some erroneous claim by the borrower about their income or assets.

Seems there is sufficient fraud on both sides to go around.





You have to remember that home equity loans are a relatively new idea.
Brought out by lenders to meet the demand of borrowers. Greedy borrowers
took to them like a teen to a text message. Borrowers took out home equity
loans to do stupid things like go on vacation. They used their house like
an ATM, borrowing any and all equity they could, refinancing and rolling up
the HELOC, and second mortgages into one big first mortgage with a cash out
and starting all over again.

So who caused the mess you're in? If not you - the borrower - then who?
And why is it someone elses fault that they let you - the borrower - be
greedy?

Is it the cops fault that they let you speed? It's the fault of the road
department for making the roads so smooth that you can go twice the speed
limit? So now what, you shouldn't have to pay the speeding ticket?