Posted on 05/02/2011 12:32:17 PM PDT by Notary Sojac
I think you're right, redgolum. First they'll make it REALLY hard to get fixed rate loans - then they'll 'bribe' congress to change the laws on banking (conveniently - after the fact)... and then there we'll be - mortgage payments 'reflecting' the new hyper inflation reality...
If they can pay the mortgage then do so.
If they had the property double they would not complain, well there is a downside, so suck it up.
Why should the taxpayers do it for anyone?
The lenders also took a risk, so shouldn’t they also just “suck it up”?
The lenders were ordered to make affirmative action type loans and had to take those risks, so the answer is NO.
So the goverment and the banks conspired to commit fraud by a scheme to artificially inflate the price of residential real estate?
Call it what you want, but that is exactly what happened.
The banks didn’t conspire, they were ordered to pretty much do no look loans on low interest rates.
When rates are low, people think they can afford and borrow more, which is what raised prices way beyond reason.
If the banks knew prices were artificially inflated and still allowed people to buy at those prices through the use of fraudulent appraisals, should they be punished for those actions by the market?
If the federal government had stayed out of the real estate loan business, this would have never happened. The people with the most knowledge of the scam should be the ones suffering the most.
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