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Taxpayers mainly :(

It’s ridiculous the banks created loans that were only sustainable if the housing market perpetually inflated. They threw out good lending practices because they were greedy that’s why they were known as Liar’s Loans. In the past you were only able to get a home loan with money down, income verification, good credit and only a small amount of other debt.

Do you recall the hundred’s of offers you would get in the mail offering to refinance your home? I know lot’s of people who were encouraged to buy more then they could afford. I remember my own daughter was buying her first home and I had to talk long and hard to her and the son in law in order to talk them out of doing that after the loan officer told them how easy it was. They got a traditional loan and bought what they could afford and still have the home thankfully.

I do think people who took those loans were also at fault but if not for the Banks greed it could not have happened at all. Who should be the wiser the banker or the average Joe? Remember the borrower’s were being told if they can’t refinance it they can sell it and make money?

The Banks let/encouraged/helped people to lie about their income and quickly packaged them up called them AAA and sold them to investors world wide as fast as they could and dumped Trillions on the taxpayers through Fannie/Freddie.

At least the people who bought more then they could afford are suffering their own consequences, i.e. loss of credit, house. For the Banker’s they got to keep all the money they made and got Millions in bonus’s.