Great Youtube Clip…

[yojimbo]

I place 100% of the blame on the people.

100%

You can blame the “leaders” but you have a choice to follow a leader or not to.

You can blame politicians but who elects the politicians? Do not play the game of moral equivalency between the two parties.

You can blame “predatory lending” but who walks into the bank to get a loan?

You can blame greedy corp’s and CEO’s but who is feeding them the $ to fuel their greed?

All I’ve seen for the last 20 years has been a general public dead set on “acquiring” everything they perceive others as having whether they be fictional tv characters, blinged up celebrities, or their neighbors that just got that Escalade and tropical pool installed.

Nearly every single home purchase I look at shows multiple re-finances over the last 5 or 6 years with equity being pulled out every single time. For what? I guess it takes a lot of $ to keep up with the Jone’s these days.

This society succumbing to the marketing blitzkrieg through tv, music, celebs,neighbors, news, etc. is pathetic and it is our own fault for believing all the slop that is fed to us as reality. How many shows sprang up hyping how to get rich flipping property in the last 5 years? Some of the late night ads regarding real estate wealth were so stupid it was laughable yet those advertisers made money, and lots of it, catering to people who had the need to become instantaneously rich in the easiest possible manner.

So, I don’t blame politicians or CEO’s. They are just like everyone else except that they operate on a larger scale. If a corrupt janitor works his way up to the CEO position he will be a corrupt CEO.

I know many on this board hold themselves responsible for their actions and I am grateful that there are still some who value that principle. Unfortunately it is a dwindling minority.

In my opinion if you want to place blame on all of this mess, and the myriad others that are going to follow, quit engaging in kindergarten-like arguments about Bush and the Democrats or Republicans and go find yourself a mirror.

[alarmclock]

I would say that many of the aforementioned reasons “set the stage” for the housing bubble (e.g. CRA, GSEs, DPA, repeal of Glass-Steagall).

But the “but-for” cause of the bubble rests with greenspan for holding rates below 2% for 3 years (Dec ’01 – Sept ’04). Everything else was kindling, the Fed lit the fire.

The low FFR triggered BOTH SUPPLY and DEMAND: It triggered supply of easy money AND it forced billions of dollars of investments into higher paying securities. These large pension funds have to earn 6% or better to make good on the promises of the last 20 years; when the FFR went down to 1%, this was a nightmare scenario for meeting future defined benefit obligations.

(I feel that) the thing so many poeple don’t realize is that if no-one was buying the mortgage securities, you couldn’t have had such a large bubble. It took a combination of people willing to take on the debt PLUS people willing to buy the debt–and the willingness to buy the debt grew because the FFR was below the rate of inflation.

[alarmclock]

I would say that many of the aforementioned reasons “set the stage” for the housing bubble (e.g. CRA, GSEs, DPA, repeal of Glass-Steagall).

But the “but-for” cause of the bubble rests with greenspan for holding rates below 2% for 3 years (Dec ’01 – Sept ’04). Everything else was kindling, the Fed lit the fire.

The low FFR triggered BOTH SUPPLY and DEMAND: It triggered supply of easy money AND it forced billions of dollars of investments into higher paying securities. These large pension funds have to earn 6% or better to make good on the promises of the last 20 years; when the FFR went down to 1%, this was a nightmare scenario for meeting future defined benefit obligations.

(I feel that) the thing so many poeple don’t realize is that if no-one was buying the mortgage securities, you couldn’t have had such a large bubble. It took a combination of people willing to take on the debt PLUS people willing to buy the debt–and the willingness to buy the debt grew because the FFR was below the rate of inflation.

[alarmclock]

I would say that many of the aforementioned reasons “set the stage” for the housing bubble (e.g. CRA, GSEs, DPA, repeal of Glass-Steagall).

But the “but-for” cause of the bubble rests with greenspan for holding rates below 2% for 3 years (Dec ’01 – Sept ’04). Everything else was kindling, the Fed lit the fire.

The low FFR triggered BOTH SUPPLY and DEMAND: It triggered supply of easy money AND it forced billions of dollars of investments into higher paying securities. These large pension funds have to earn 6% or better to make good on the promises of the last 20 years; when the FFR went down to 1%, this was a nightmare scenario for meeting future defined benefit obligations.

(I feel that) the thing so many poeple don’t realize is that if no-one was buying the mortgage securities, you couldn’t have had such a large bubble. It took a combination of people willing to take on the debt PLUS people willing to buy the debt–and the willingness to buy the debt grew because the FFR was below the rate of inflation.

[alarmclock]

I would say that many of the aforementioned reasons “set the stage” for the housing bubble (e.g. CRA, GSEs, DPA, repeal of Glass-Steagall).

But the “but-for” cause of the bubble rests with greenspan for holding rates below 2% for 3 years (Dec ’01 – Sept ’04). Everything else was kindling, the Fed lit the fire.

The low FFR triggered BOTH SUPPLY and DEMAND: It triggered supply of easy money AND it forced billions of dollars of investments into higher paying securities. These large pension funds have to earn 6% or better to make good on the promises of the last 20 years; when the FFR went down to 1%, this was a nightmare scenario for meeting future defined benefit obligations.

(I feel that) the thing so many poeple don’t realize is that if no-one was buying the mortgage securities, you couldn’t have had such a large bubble. It took a combination of people willing to take on the debt PLUS people willing to buy the debt–and the willingness to buy the debt grew because the FFR was below the rate of inflation.

[alarmclock]

I would say that many of the aforementioned reasons “set the stage” for the housing bubble (e.g. CRA, GSEs, DPA, repeal of Glass-Steagall).

But the “but-for” cause of the bubble rests with greenspan for holding rates below 2% for 3 years (Dec ’01 – Sept ’04). Everything else was kindling, the Fed lit the fire.

The low FFR triggered BOTH SUPPLY and DEMAND: It triggered supply of easy money AND it forced billions of dollars of investments into higher paying securities. These large pension funds have to earn 6% or better to make good on the promises of the last 20 years; when the FFR went down to 1%, this was a nightmare scenario for meeting future defined benefit obligations.

(I feel that) the thing so many poeple don’t realize is that if no-one was buying the mortgage securities, you couldn’t have had such a large bubble. It took a combination of people willing to take on the debt PLUS people willing to buy the debt–and the willingness to buy the debt grew because the FFR was below the rate of inflation.

[CA renter]

alarmclock,

I agree 100%. Everyone had a hand in this, but Greenspan is #1 because he forced people to move further out on the risk curve in order to break-even or beat inflation.

[CA renter]

alarmclock,

I agree 100%. Everyone had a hand in this, but Greenspan is #1 because he forced people to move further out on the risk curve in order to break-even or beat inflation.

[CA renter]

alarmclock,

I agree 100%. Everyone had a hand in this, but Greenspan is #1 because he forced people to move further out on the risk curve in order to break-even or beat inflation.

[CA renter]

alarmclock,

I agree 100%. Everyone had a hand in this, but Greenspan is #1 because he forced people to move further out on the risk curve in order to break-even or beat inflation.

[CA renter]

alarmclock,

I agree 100%. Everyone had a hand in this, but Greenspan is #1 because he forced people to move further out on the risk curve in order to break-even or beat inflation.

[patb]

[quote=socrattt]. Firstly, Bush did not have his hand in 9/11, although many conspiracy theorist would beg to differ. Secondly, the housing market, which obviously took many years and a lot of deregulation to inflate. This would leave Bush with one major problem and that was Iraq.
!![/quote]

“Bin Laden Determined to Attack”

Bush was on vacation when he got that briefing.

[patb]

[quote=socrattt]. Firstly, Bush did not have his hand in 9/11, although many conspiracy theorist would beg to differ. Secondly, the housing market, which obviously took many years and a lot of deregulation to inflate. This would leave Bush with one major problem and that was Iraq.
!![/quote]

“Bin Laden Determined to Attack”

Bush was on vacation when he got that briefing.

[patb]

[quote=socrattt]. Firstly, Bush did not have his hand in 9/11, although many conspiracy theorist would beg to differ. Secondly, the housing market, which obviously took many years and a lot of deregulation to inflate. This would leave Bush with one major problem and that was Iraq.
!![/quote]

“Bin Laden Determined to Attack”

Bush was on vacation when he got that briefing.

[patb]

[quote=socrattt]. Firstly, Bush did not have his hand in 9/11, although many conspiracy theorist would beg to differ. Secondly, the housing market, which obviously took many years and a lot of deregulation to inflate. This would leave Bush with one major problem and that was Iraq.
!![/quote]

“Bin Laden Determined to Attack”

Bush was on vacation when he got that briefing.

[Author]

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