Who's more to blame for the 2008 mortgage crisis that kicked off the recession: banks for offering people bigger mortgages than they could safely afford to pay back, or consumers for taking the loans? (UserQ)
It was FannieMae and FreddieMac that started it all. Two government agencies.
As of today they have racked up $110 million and so far the taxpayers have paid $48 million.
It started with Carter in the late 70's and picked up steam in the early 90's under Clinton.
The politicians always screw things up when they try to be nice to a specific group. Minorities weren't the only ones who took loans they couldn't afford. Everyone was affected by it. I was told in 2000 that I was approved for a loan that was twice what I knew I could afford.
Between the two, it's more the borrowers fault. If you can't afford it, don't take it. But the most blame goes to the government for forcing lenders to loosen their standards in an attempt to make home ownership available to more minorities. Too many people got in over their heads.
How could any of you fucking idiots think that the banks would be responsible for someone taking out a bigger loan than they can afford? It's funny how it's all democrats that are in foreclosure.
Personal responsibility is a list art in this once great country of ours. The question should add a third option: the politicians that rewrote the law and FORCED banks to make loans to people who couldn't repay them.
Personal responsibility is the foundation for a sound mind. However, when you work long enough in executive branches of gov you learn a few things. Every law, incentive, piece of information given or withheld... will effect change somewhere. America is under financial attack. Just watch and see.
I'm happy with polls. Very shocked and impressed with the divided republican votes.
Borrowers had to sign the truth in lending form. it's the page with big bold boxes showing amount loaned, interest rate, total interest paid, interest + principal total paid.
grow up people! take responsibility for your own actions! it is not always someone else's fault!!!
Leave it to the majority to blame the people with money to give! Ha
"A drug-dealer offers crack cocaine to a high school student who later dies due to a drug overdose." Who's to blame, the drug dealer for offering or the student for doing the drugs?
I'd say the student. Would you not?
People are responsible for their actions.
Both are at fault...the government played its part too, just don't tell NBC or CNN...they haven't figured it out yet.
both the lenders and the borrowers are gay
Personal responsibility! Just because something is offered DOESN'T mean you have to do it!! Think for yourself people!!
Both borrowers and lenders were greedy, and they equally took advantage of the system our idiotic goverment set in place.
Seems like another scam to get us to buy high, sell low. America is under attack. We will become as the rest of the world is. Sell your children into slavery? You choose debt. Hand over your money.
ummm...of the two choices, I'd say the borrowers. but what about the fact that FDIC lenders were required to give risky loans to risky people by our beloved federal government?
housing isn't the only factoring this...
Personal responsibility! We are in our 5th home and mortgage. We have always been approved for mortgages 50 to 150K over what we felt comfortable with. Bought what we can afford not what the bank says we can get approved for.
They intentionally took advantage of an already pillaged yet hopeful people.
I think this question is somewhat over simplified.
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The government for forcing the banks to loan more money than they could and guaranteeing the bank would get their money even if people defaulted on the loan
nobody forced anybody to borrow money, but congress did force some people to lend money.
It's high time people took responsibility for their actions. Nobody forced them to sign the papers for a house they KNEW they could't afford.
While I wholly believe that the borrower is ultimately responsible for ANYTHING they put their signature to, I also believe the banks wrongfully extorted people who they knew could not afford these loans. So, I believe the banks were acting very shady, but the borrowers are the ones who went along.
Soo true sunflower. Government should have been the only answer on who to blame.
An entitlement mentality is also to blame!
The Clinton Administration is responsible for pressuring Fannie Mae into accepting high risk loans. In 1999, the NY Times predicted the entire collapse of the market because of Clinton's policies.
All your comments well said Maryann
Not only did the corrupt government not enforce the regulations, it also used extortion to force the banks to violate the regulations. There are no prosecutions because the finger would point back to the government.
then you have outside sources telling these same banks etc they will sue them for discrimination if they don' t make more loans to minorities. Just trying to be realistic check out foreclosure rates for minorities......
if what these evil, greedy banks and other financial institutions broke lending laws why don't we hear about more prosecutions? They played the game inside the laws passed by our wonderful politicians. The problem is our government! Getting away from fundementals is dangerous.
I hate hearing ppl cry you read the contract
bill Clinton MADE the banks give out these loans.
Dr. Elizabeth Warren predicted the housing bubble in her 2003 mustread book "The Two-Income Trap". She explains how lenders devised a means to make bad loans profitable. This removed the incentive for lenders to loan to qualified buyers. "House of Cards" talks about Wall St. winning bets on losers.
The other pitfall is that lenders told borrowers that they could make payments for 5+ years at low rates & refinance before payments ballooned. The lender sold off the mortgage before it went South & homeowners found that a refinance wasn't feasible. Many refinance programs are themselves shams.
It wasn't just about buying a house you could never afford. Many responsible homeowners borrowed against the equity on their house, thinking home values ALWAYS go up. Prices became inflated, lenders were unscrupulous, borrowers were spread too thin...& the rest is history.
I recall it was balloon interest payments on subprime mortgages in terms only a trained lawyer could translate, the fact that borrowers with good credit were sold subprimes too; banks that sold bad loans to investors as AAA Mortgage Backed Securities & the financial deregulation to enable the scam.
It's not my fault. The devil made me do it.
It's the lenders fault 100%
Anyone that can't see that is a moron.
It was (is) all much bigger than avaricious bankers and starry-eyed buyers.
Clinton Bush and Obama (right now) forced banks to make bad mortgages. All made worse by money laundries at Fannie and Freddie and gold diggers Dodd and Frank.
Coke addict read up on it. Clinton's admin started it. They pretty much forced the lenders to reach out to lower incomes.
I was 25 when I bought my house. Had the brains to go for lower then what I could afford in case something dramatic did happen. It's called personal responsibility people read up in it.
It amazes me that folks would rather place blame than take responsibility for their own actions.
dr jones, as a Realtor ethically we have to give buyer's options. The borrower is the one going in debt for that money, before signing for that loan they knew knew their payments would go up.
If lenders didn't have such shady practices, then I would vote borrower. But time again, the lenders, the realtor, and the broker; sold, borrowers on the thought they could get the loan then refinance.... didn't happen.
It's both their faults. Lenders should not have given out loans so carelessly and borrowers should not have taken out loans they could not afford.