No one said he was the only cause. Sure, the rest of the Fed need to be sent to Gitmo as well. Why is the talk of personal responsibility never applied to people in charge?
By cutting rates so much, he facilitated the ARMs race and encouraged it. Did it go much further than he intended? YES!!
Did he expect the non-banks that he had no control over to forgo all caution? NO!!
Did he expect loan brokers to sucker many people and not provide the suitable product? NO!
Did he expect rampant fraud? NO!
Get a home loan should be just as easy as ordering a pizza, right? I still get flyers with 0.25% rate, with 500,000 loan for $200 a month, instead of $3000. No where does it say how long the rate will last and what the reset will be? These guy are getting bolder. Remember, that state regulation has been thrown by the lobbysist loving pigs in DC and there is NO fed regulation. Not everyone has a PHd, let alone know how to fill out the 10 line 1040EZ form. I think you forget that most people have to use a calculator to figure out 15% tip!
What is the problem with what happended? It drove home prices much higher than they should have, driving some out of the state.
Having castigated all in power, do I think we should bailout everyone? NO. Let the defaults begin, most of these people should NEVER bought a home.
Maybe in a few egregious cases, the feds and press should spotlight the cases and force the lender to change terms. (Has happened in a few cases, thanks to the press, not the regulators)
