http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-385756 gabriel benet Sat, 06 Dec 2008 04:37:20 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-385756 All of these messages are at least partially right. But...What should we do? The solution is simple: Let capitalism heal itself.There are already laws to punish the crooks and squandrels.Let some pitbull like Giuliani take care of them. I appeal to your common sense: A crisis of this magnitud does not occurs suddently and without warning. Don't let them scare us. A crisis for some is an opportunity for others. Let the scum go broke.Above all don't reward them. The able among us will take over and they will restore our prosperity. This solution is the only pragmatic one, but much more important is the only one based on the principles of freedom and justice on which this country was founded. All of these messages are at least partially right.
But…What should we do?
The solution is simple:
Let capitalism heal itself.There are already laws to punish the crooks and squandrels.Let some pitbull like Giuliani take care of them.
I appeal to your common sense:
A crisis of this magnitud does not occurs suddently and without warning.
Don’t let them scare us.
A crisis for some is an opportunity for others.
Let the scum go broke.Above all don’t reward them.
The able among us will take over and they will restore our prosperity.
This solution is the only pragmatic one, but much
more important is the only one based on the principles of freedom and justice on which this country was founded.

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-376464 Comment on The Three Root Causes of the Mortgage Crisis by … Wed, 05 Nov 2008 19:30:36 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-376464 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-376431 Debajyoti Basu Wed, 05 Nov 2008 17:54:02 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-376431 The problem was with American CEO's hiding the mounting bad assets from the balance sheet. They did not realize that the effect would be so bad so soon. Why Citi survived and Lehman did not can be debated. The problem was with American CEO’s hiding the mounting bad assets from the balance sheet. They did not realize that the effect would be so bad so soon. Why Citi survived and Lehman did not can be debated.

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-367105 Comment on The Three Root Causes of the Mortgage Crisis by Cruz Tue, 07 Oct 2008 03:53:09 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-367105 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-367008 Cruz Mon, 06 Oct 2008 22:02:29 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-367008 I agree with all the posts here. There was no sound judgement being exercised for the creation and purchase of these loans. My husband and I purchased a home in 2004 with a low-interest FIXED rate loan. We had already owned a home prior so we were well aware of the costs involved. With our first home and with our second, we were told a crazy amount that we could afford loan-wise and the amounts were based on GROSS income, not net! Had we not been using common sense, we could easily have been suckered into taking on a home loan that was much more than we could afford. We bought the largest home we could AFFORD, and we have had no trouble making our payment. I can understand when someone loses their job or suffers injury and are unable to make payments, but when they simply signed up for something they shouldn't have, then the blame rests on them for not saying NO! It shouldn't take a college degree to figure out that more money going out than coming in is not a good deal. But as always, when there are large sums of money involved, you can believe sound judgement tends to fly out the window. What were these companies thinking? What happened to planning for the worst-case scenerio? I agree with all the posts here. There was no sound judgement being exercised for the creation and purchase of these loans. My husband and I purchased a home in 2004 with a low-interest FIXED rate loan. We had already owned a home prior so we were well aware of the costs involved. With our first home and with our second, we were told a crazy amount that we could afford loan-wise and the amounts were based on GROSS income, not net! Had we not been using common sense, we could easily have been suckered into taking on a home loan that was much more than we could afford. We bought the largest home we could AFFORD, and we have had no trouble making our payment. I can understand when someone loses their job or suffers injury and are unable to make payments, but when they simply signed up for something they shouldn’t have, then the blame rests on them for not saying NO! It shouldn’t take a college degree to figure out that more money going out than coming in is not a good deal. But as always, when there are large sums of money involved, you can believe sound judgement tends to fly out the window. What were these companies thinking? What happened to planning for the worst-case scenerio?

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-365264 Comment on The Three Root Causes of the Mortgage Crisis by Steve Q Wed, 01 Oct 2008 06:16:24 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-365264 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-365177 Steve Q Tue, 30 Sep 2008 22:39:23 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-365177 Sounds like you are all correct! The Gov. set the macro environment O The Fed keeping rates too low for too long. O President Clinton and Congressman wanting all Americans to achieve the American dream of home ownership. Then using CRA to push the lenders Olishpushing Fannie, Freddie and CRA to take thi Sounds like you are all correct! The Gov. set the macro environment
O The Fed keeping rates too low for too long.
O President Clinton and Congressman wanting all Americans to achieve the American dream of home ownership. Then using CRA to push the lenders
Olishpushing Fannie, Freddie and CRA to take thi

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-365178 Steve Q Tue, 30 Sep 2008 22:39:23 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-365178 Sounds like you are all correct! The Gov. set the macro environment O The Fed keeping rates too low for too long. O President Clinton and Congressman wanting all Americans to achieve the American dream of home ownership. Then using CRA to push the lenders Olishpushing Fannie, Freddie and CRA to take thi Sounds like you are all correct! The Gov. set the macro environment
O The Fed keeping rates too low for too long.
O President Clinton and Congressman wanting all Americans to achieve the American dream of home ownership. Then using CRA to push the lenders
Olishpushing Fannie, Freddie and CRA to take thi

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-364338 Comment on The Three Root Causes of the Mortgage Crisis by Jeff Sun, 28 Sep 2008 01:05:45 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-364338 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]> http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/comment-page-1/#comment-364206 Jeff Sat, 27 Sep 2008 14:03:39 +0000 http://allfinancialmatters.com/2008/01/17/the-three-root-causes-of-the-mortgage-crisis/#comment-364206 Greed & stupidity. Greedy and/or stupid Borrowers thought some force of nature had changed all the rules and made big, new fancy houses that only ever go up in value affordable to all. I think I put more blame on the Borrower simply because, just because somebody offers you something doesn't mean you have to take it (see "drugs"). The Lenders who lent to unqualified borrowers are no saints, but they didn't FORCE anybody to sign. Greed & stupidity. Greedy and/or stupid Borrowers thought some force of nature had changed all the rules and made big, new fancy houses that only ever go up in value affordable to all. I think I put more blame on the Borrower simply because, just because somebody offers you something doesn’t mean you have to take it (see “drugs”). The Lenders who lent to unqualified borrowers are no saints, but they didn’t FORCE anybody to sign.

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