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| Re: US National Debt passes $12 trillion (526237) | |||
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Re: US National Debt passes $12 trillion |
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Posted by SMAZ on Thu Nov 19 14:15:17 2009, in response to Re: US National Debt passes $12 trillion, posted by docstox on Thu Nov 19 14:00:49 2009. Even if your assertion that a very low percentage of loans were made to minorities that went bad, the rule changing led to massive amounts of loans with zero percent down and low interest rates to middle and upper class borrowers.This led to the real estate bubble with it's resulting disaster with CDO's.Well, it's the Fed's assertion not mine. As for the latter that was due to a complete lack of regulation. Regulation helps capitalism thrive because the rules are clear for all. We have seen what happens when regulation and oversight are lax. Years ago, you put 20% down and your income had to be verified with three years of tax returns to be able to pay it.The mortgagae remained in the bank you originated from for it's entire length.That is sound banking policy that was established in the Depression years.If you can't do the above, rent! They should go back to that. Securitization is insane. They say it brings better efficiencies but efficiency is useless when there is moral hazard. I could even see less then 20% if other conditions are met such as solid work history or exceptions for government backed VA loans, etc. Also high ownership rates does not necessarily boost the overall economy. Develepers have always thrived with rental properties as well. NYC is Exhibit A for the concept. The govt should reconsider the goal of universal home owneship. A better goal would be adequate housing whether it's a rental or home-owned. Living in your own ramshackle trailer is not a step up from living in a decent rental unit. |
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