golferwhoworks
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actually it is the investors who got very greedy and allowed lending banks and mortgage companies to do just about any thing as mortgage backed securities generally preformed very well as there was about a .04% rate of foreclosures nation wide. So they let them just make up their own programs that did not protect them or the investors--so when these crazy mortgages started to change and the home owners could no longer afford the changes the foreclosure ratio went from .04% --.09% and investors started pulling out as that was now unacceptable--- and it was of their own doing as all it takes to get this back on track is what we are having to do again and it is common sense underwriting --collateral, capacity to service the debt, and credit.
I am a mortgage banker in tN & KY |
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R W
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People living above thier means |
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Eddy T
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The creators and traders of the sub-prime mortgages, trading in the name of free market. The lack of government's regulatory and supervisions. Those banks involved with write downs. Banks changing their new lending guidelines. |
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my16paws
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First and foremost Borrowers for borrowing beyond there means this led to the start of huge numbers of defaults. with caused the securities that were pledged on these loans to drop.
Lenders for allowing borrows to borrow beyond there means.
Governments for not properly regulating the situation |
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Butternut27
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The Govt and the banks...
The Govt kept interest rates ridiculous low and encouraged the banks to lend this cheap money so Gordon Brown could say he was a fantastic Chancellor look at the economic growth during my time in charge of the economy,....unfortunately the idiot did not realise that credit is not economic growth....and that encouraging the nation to binge on cheap credit would lead to problems....
The banks became very reckless with the lending....
These 2 are responsible for getting the nation hooked on cheap cash and now we are all paying with a long hangover...as some of us did not even indulge in this binge.... |
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starlight
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everybody is to a certain degree, the government for being greedy and wasteful, high powered business people for demanding hundresa of thousnad in wages and bonuses a year, everyday joe for using credit cards and loans....
it goes nearly to the botton of the pecking order. now everyone is suffering and their still striking for more pay |
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bekkibex
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too many people in a to small country. And people not being able to run it properly but then again u cant keep everyone happy can u?? i dont have a problem with imigrants as long as they work and dont bring their 50 million kids over then have more. |
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soundman_jaybee
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Immigrants!!!??? wot??
No - simple greed - it all goes back to the exploitation of the subprime mortgage market, where loans were badly sold in order to keep the books full of clients. These bad loans were bought by big banks and they are now paying the price...them and the poor saps who find themselves unable to pay their mortgages.
http://www.thecreditcruncher.com/2008/06/sub-prime-mortgages-are-to-blame.html
This has had the effect of squeezing funds that would otherwise have been available for lending, and to a general slow-down in the economy. There are other factors in the economic world at the moment namely the rise of oil prices, the drop in the dollar and static wages, each of which has an effect on the economy and have combined into what we are calling the credit crunch.
In the meantime, government has been trying to ward off the effects of the credit crunch thus worsening it and prolonging everyone's agony (whilst throwing the taxpayers money away!).
http://www.thecreditcruncher.com/2008/07/is-government-intervention-to-be.html
Hence it will be at least two years before the economy stabilises. Of course because there are different elements at work it wil be statistically impossible to say when the credit crunch started or when it will cease, nonetheless at some point politicians will try to tell you that they have defeated the problem in order to make political capital. |
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ITMatt
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Lenders and borrowers!
Means people like me, who work hard, save well and are overall financially responsible are now going to be punished (have to pay) for other peoples financial irresponsibility. Immigrants don't even come in to this. |
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Facts Enrage Dembots
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The people who took the credit... nobody forced them to live beyond their means. It has become "convenient" to blame the Government, however, nobody is responsible for accepting credit that they can't afford, except the consumer.
If you can't afford it, don't buy it... sure, crdit is ok, but if you can't pay it off... don't buy it. |
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Barbara M
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The Bush Administration.......
Thank you George W |
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Veritas
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Lenders, borrowers, and the Government for failing to regulate them properly, and further enabling them by choosing a totally inadequate inflation measure (CPI) which allowed the BOE to pursue a low interest rate policy for far too long resulting in asset bubbles. |
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SB
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the government, mainly congress, pushed the banking industry to write loans to people that really had no right to have them in the first place.., I mean.., if you cant afford the payments, then you should'nt be living in a house, just rent. |
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lemonade!!
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the bloody parliament the idiots RAWR they make me angry =D |
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mindmatter
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northern rock 0_o
joke. joke.
sorry |
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src50
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Immigrants? How did you figure that out? |
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Jimpelicanpowney
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Shaun off eastenders |
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