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The DemocRATS forced the banks to lend to people who had no chance of ever paying the money back.

You're right on. But also those that had the gall to purchase a home knowing they could not pay for it speaks of the intelligence of millions of Americans. Dumb ignorant and probably were looking for something for nothing. They are no better than a common thief.

From the article:

The banks knew this. When they were lending $500,000 to a bus driver with $1,000 in his checking account, they knew that their loan was only guaranteed by the value of the home. If they didn’t know it, they should have. Their incompetence is not our problem.

You're right on. But also those that had the gall to purchase a home knowing they could not pay for it speaks of the intelligence of millions of Americans. Dumb ignorant and probably were looking for something for nothing. They are no better than a common thief.

You can purchase a home with 0% down--100% financing. The payments are comprable to what you are paying for rent anyway. Are you dumb to take that deal?

No, because (with the way home prices were increasing every year) if you could hold on for a while, you could sell the house and actually make serveral thousand dollars on the sale, all without putting out any money (other than what you were going to pay for rent anyway--which is a wash).

House fipping became a major problem that led to millions being underwater when the housing bubble burst.

Also consider that most people believe they will be better off in the future than they are today. So a young couple buys a house they can't afford with little money down, thinking "sure, it'll be a struggle at first, but after a few years there will be promotions at work; we'll be making more money; and then we'll have a easier time making the payments; in the mean time we're building up equity, so if we have to we can sell the house and get out from under it."

Then the housing bubble burst and their "last resort" plan of getting out by selling the house is no longer an option. Then on top of that, instead of the expected promotions at work (and pay increase), one of them loses their job (which cuts their income). Now their stuck underwater without the means to make payments.

This is simply a calculated risk that backfired. But hey, that's why they call it risk. Nobody that purchases a home knows for sure that they will be able to pay for it. Job loss, illness, injury, and death are all unpredictable reasons that someone might lose their home.