Quote Originally Posted by psychocat
That statement makes no sense at all.

You should do a bit of research and you will realise that the problem with home loans was not because of people who could pay but those who couldn't.

The historical references are there for all to see , the consequences of the wall street crash were tighter regulation, whilst the regulations were in place all was reasonably well.
The relaxing of those rules to stimulate economic growth led to less oversight and the whole circus got out of hand , deregulation of banks leaves them to oversee themselves and they made a complete balls up of it.

FACT ! :thumbsup:
Haha, your right, that statement didn't make sense. I meant to type "to people who can't afford them. Obviously extending credit to people who have reasonable income to pay the debt should be extended credit.

I intended to say government intervention helped cause this problem by demanding banks extend home loans to people who can'T afford to pay it back. At the same time though it's the consumers fault for signing on the line.

How stupid do you have to be to sign for a fluctuating mortgage if your living paycheck to paycheck. Agree to a fixed rate you can afford to pay every month. Owning a home is a privilege not a right.

You can't blame the problem on the banks alone though. It's the fault of the people who took out the loans, the politicians forcing the banks to extend loans to high risk people, as well as the executives of many of these banks participating in corrupt practices.

The Feds can't even oversee corruption in their own ranks, are we really supposed to trust them with enforcing these "tighter regulations." All we would have are the corrupt overseeing the corrupt.