tag:blogger.com,1999:blog-35450053.post7223858681759752201..comments2023-12-08T12:43:43.718-05:00Comments on Bearing Drift Ohio: Fat Cats or Stupid BorrowersThe Squeaky Wheelhttp://www.blogger.com/profile/00647886155863089238noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-35450053.post-74309889450712835892008-09-29T23:21:00.000-04:002008-09-29T23:21:00.000-04:00Different decade, different scam. In the 80's the ...Different decade, different scam. In the 80's the banks made loans to farmers who couldn't afford them. More recently, these fat cats offered predatory loans, handing them over to other lending institutions as fast as the could, like a game of financial "hot potato". I'm no Republican, but I have to agree with those Republicans who say that the market will have to work this out and the govt. should no more invest in these bad loans than private investors who won't touch them. Hold onto your butts my fellow Americans...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-35450053.post-19191233228976331732008-09-26T21:09:00.000-04:002008-09-26T21:09:00.000-04:00There's plenty of blame to go all around. The buye...There's plenty of blame to go all around. The buyers who said "I want it all and I want it now". (consumer demand)<BR/><BR/>The lenders who came up with loan programs to comply with the government's goals that all Americans should own a piece of the American Dream. (supply)<BR/><BR/>In this area, I place a lot of blame on the builders who told buyers they could afford a lot more house than the buyer ever thought possible. (greed) The buyers believed them because afterall, "a lender wouldn't approve them for something they couldn't afford, would they?" <BR/><BR/>Actual example, was a couple who were approved to buy up to a $114K home with a regular lender. A major builder told them they could afford a $220K home. That's why so many of the homes in trouble are in the newer subdivisions. Thankfully, those buyers stuck with the $114K home and they're OK.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-35450053.post-81763538761840345962008-09-26T16:40:00.000-04:002008-09-26T16:40:00.000-04:00I blame both but your point is valid.But one has t...I blame both but your point is valid.<BR/><BR/>But one has to use comon sense. if your household income is $50k, you can't really believe you can afford $350k.The Squeaky Wheelhttps://www.blogger.com/profile/00647886155863089238noreply@blogger.comtag:blogger.com,1999:blog-35450053.post-7393548706239554582008-09-26T12:41:00.000-04:002008-09-26T12:41:00.000-04:00You can't borrow unless there's a willing lender! ...You can't borrow unless there's a willing lender! There's always going to be folks out there who want to borrow more than they can afford. It's the job of the lender to assess risk and know whether or not they should take a chance on someone. The issue is that financial institutions ignored protective policies they had in place for years against high risk lending/investments. I will never blame "fat cats" because that's liberal whining against those who have done well in business. However, you can't pin it on the borrowers, because they can't force lenders to give them money. I don't blame the junkie for being a user, I blame the dealer for providing the smack in the first place.Ohio Bassisthttps://www.blogger.com/profile/02044116819920499677noreply@blogger.com