25 people to blame for the financial crisis

Where was Jimmy Carter? The US Congress? Bill Clinton & Raines were the only ones I scored over a 1.

Force lenders to give loans to those who are unable to repay them & you get this mess. Carter started it, Clinton expanded it & the Congress used its power to force bad loans. Without the bad home loans, we'd not be where we are.
 
Yeah, that whole "take responibility for your purchases" and not letting people declare bankruptcy as easily was what did it. :laugh:

"Trying to tie the forclosure crisis to the [2005 bankruptcy] bill is a stretch," said the ABA's Corwin. Corwin called the Credit Suisse report "junk" and said the Bernstein study wasn't "worth the paper it was written on."
 
spike said:
Yeah, that whole "take responibility for your purchases" and not letting people declare bankruptcy as easily was what did it. :laugh:
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no shit. and certainly bankruptcy reform had massive support from the party of superstar businesspersons.
 
Gonz said:
Where was Jimmy Carter? The US Congress? Bill Clinton & Raines were the only ones I scored over a 1.

Force lenders to give loans to those who are unable to repay them & you get this mess. Carter started it, Clinton expanded it & the Congress used its power to force bad loans. Without the bad home loans, we'd not be where we are.
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The banks weren't exactly blind as to which would become bad debts, but went with it anyway because of the profits made on the low to med risk mortgages. The issues came when the mortgages were used as credit markers as if they were anything but bad debts. Claimed to be more secure than they actually were, they were sold to pretty much anyone who wanted to get onto the housing-price boom.

When that particular illusion dissipated and the boom turned out to be a bubble, which burst...all of the 'secure paper' became junk and started taking down banks left and right.
 
MrBishop said:
The banks weren't exactly blind as to which would become bad debts, but went with it anyway because of the profits made on the low to med risk mortgages.
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Which is where Franklin Raines comes in.

The feds said "lend or we'll write legislation making you lend". They also said, "it's no big deal, we'll buy your debt so you can lend some more".

The banks would have been fools for not playing along. Making loans, getting bad debt removed from their books & while getting more money to make more loans...worked great until someone realized that $457,995 is too much to pay for a 1200 sq/ft house.

Had the government stayed out of the banking/mortgage business, housing would still be affordable & we'd not be in CRISIS mode.
 
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