The only time mortgage confusion was higher that it is right now is back when sub-prime mortgages were not known to be the cesspool that we now know them to be. The world economy has collapsed. Much of the world lays the blame for the collapse at the feet of greedy Americans. While this is patently unfair (who’s not happy to sell us crap?), it is true that three American parties do share the blame. The first two are those who bought homes they couldn’t afford and those who gave them mortgages. Of these, the most dangerous and most responsible party, the Federal Reserve Bank, is also the malefactor fingered the least.While surfing I found this international view of point on this blog about geld lenen zonder bkr toetsing.
The Federal Reserve increased the amount a bank could loan relative to the amount the bank holds in deposits. It is hard to argue that the increase to a 30-1 ratio was simple idiocy. Did you see Jon Stewart hammer Jim Cramer, the host of CNBC’s Mad Money, on who did this? Well, the answer is, the Federal Reserve Bank did it. Congress must replace the FRB.
Mortgage brokers tried selling a subprime mortgage to any prospect that had a pulse. They dit it in a way that would make the most hardened magazine subscription telephone sales person squirm.
These shaky mortgages were then bundled and sold to financial firms as ‘asset backed paper,’ the now infamous ‘toxic assets’ we, the taxpayer, are buying from the banks. An other word for a so called toxic asses is a liability. And that’s what the governement is buying. The government is effectively using your money to buy these liabilities named toxic assets.
And lastly are the people who bought homes they couldn’t afford, and then started whining that they didn’t know they had an adjustable rate mortgage. I know that’s harsh, but it is the truth. Pity them, yes. Bail them out? Not a chance.
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