Where did the middle class go?

[carlfense]

And, nice attempt at twisting my words, but I did not say we should ONLY listen to one side. I simply pointed out that sometimes it helps to actually listen to the folks in the trenches.

These were your words, if you've forgotten.

 

Have you visited with an actual banker? You know, not a statistic on some academic worksheet, but someone who "got" the message delivered?

No twisting necessary. You said this . . . and then you proceeded to quote an NYU economics professor who has probably seen his share of statistics on academic worksheets. Awesome.

[BigRedBuster]

Here is a very good blog entry that talks about it. Yes, it's a blog but it's dead on.

 

http://www.businessw...tons_drive.html

 

Here is a quote at the bottom of the article.

 

For many potential homebuyers, the lack of cash available to accumulate the required downpayment and closing costs is the major impediment to purchasing a home. Other households do not have sufficient available income to to make the monthly payments on mortgages financed at market interest rates for standard loan terms. Financing strategies, fueled by the creativity and resources of the private and public sectors, should address both of these financial barriers to homeownership.

Looking back, how absolutely scary are those words in a government document?

The quote indicates a goal . . . now where is the pressure?

 

Listen, if you're arguing that government played a role in the sub-prime mortgage collapse, I agree. I'm not in any way claiming that government policies weren't a contributor. Where I see a problem is saying that government is 80% (where did that number come from, by the way?) responsible. Private business can't point their fingers at the government and say "I can't believe that you let us do this!"

 

I'm not a banker so I can't say....."I can't believe YOU let US do this".

 

Wow...you are wanting a technical analysis of how I came up with 80%? How about this...I used the S-W-A-G method. Fine...put it at 60% or 70%......heck, let's put it at 33%.

 

33% government

33% banks

33% borrowers

 

The fact is, none of this would have happened if the political pressure hadn't been started to increase home ownership and scrutinizing of banks and who they were denying mortgages to. That is the snow flake that started rolling down hill that started be avalanche.

Keep political pressure out of business decisions.

[carlfense]

Wow...you are wanting a technical analysis of how I came up with 80%? How about this...I used the S-W-A-G method.

You throw out a very specific percentage for responsibility and you expect it not be questioned? Really?

 

Fine...put it at 60% or 70%......heck, let's put it at 33%.

 

33% government

33% banks

33% borrowers

If you'd said that to begin with I wouldn't be wondering how you had arrived at 80% responsibility.

 

The fact is, none of this would have happened if the political pressure hadn't been started to increase home ownership and scrutinizing of banks and who they were denying mortgages to.

Is that actually a fact or is that another of your S-W-A-G?

[The King]

Doubt that it is a fact, but the political pressure certainly did start the chain reaction of banks giving faulty loans.

 

Poor(er) people have always attempted to buy houses while being denied because of credit/lack of cash/etc. When the CRA was put in place, these very same people could now afford to get a loan, somehow.

 

The consumer (being the idiot they are) didn't ask questions, they just said, 'Whoa, I can own a house? Lets do it!' and so began the inevitable downward spiral of our housing market. Maybe they should have asked questions as to why they could now suddenly get a loan, what changed, etc.

 

So yes, the government telling banks to give loans they wouldn't normally give, started it. Idiotic consumers finished it.

[BigRedBuster]

fact.

[carlfense]

fact.

K. Prove it up.

[BigRedBuster]

I've stated it very clearly in posts above.

[carlfense]

I've stated it very clearly in posts above.

You think that your statements are proof?