Off-Topic: Its called buying votes

Smith Lake Topics

(Smith Lake Specific)

2,152 messages

Updated 5/23/2024 4:01:09 AM

Off-Topic

Lakes Online Forum

83,644 messages

Updated 5/28/2024 9:14:08 AM

Boat Maintenance

Lakes Online Forum

5,193 messages

Updated 4/3/2024 3:47:36 AM

Smith Lake Fishing

(Smith Lake Specific)

61 messages

Updated 11/13/2022 9:38:51 PM

Jokes

Lakes Online Forum

4,169 messages

Updated 4/15/2024 11:05:05 PM

Sports

Lakes Online Forum

4,261 messages

Updated 5/28/2024 6:31:10 AM

Grilling & Recipes

Lakes Online Forum

2,976 messages

Updated 3/20/2024 11:53:43 PM

Tallapoosa River Topics

Lakes Online Forum

98 messages

Updated 4/15/2024 1:00:58 AM

Forum Usage Rules

Welcome, Guest

Select View Mode: [ classic | beta | recent ]

	Name:	MartiniMan -
	Subject:	Its called buying votes
	Date:	2/19/2009 9:07:19 AM

That's all this is, using taxpayer funds to buy votes. And we derided that black woman who said Obama was going to pay her mortgage, etc. It turns out she was right.

As for why we are here, I'm sure each of the people have their own story. Some were duped into bad loans that they couldn't afford when they matured, some lost their jobs, some walked away when the home value dropped below what they owed and on and on.

The overall crisis was created by government distortion of the housing market. It was a combination of the Community Reinvestment Act and groups like ACORN suing to force banks to make loans to people who simply should never have been put in that position. Another factor was Fannie and Freddie buying up loans and then the securitization of the loans. So imagine you can loan money to someone, sell that loan and never have to worry about whether they pay it off. You make the money on the origination, not the payoff. So who cares if they are creditworthy as long as I have Fannie and Freddie to buy these lousy loans.

The problem is the whole house of cards relied on ever increasing home values. When that crashed, the house of cards collapsed and here we are. I guarantee you that if the loan originator actually had to rely on the person to pay the loan back we would have never had the housing bubble. Does that mean some lower income people could never buy a home? Absolutely! But we didn't do them any favors saddling them with this incredible debt when they could have rented. Home ownership is not for everyone.