American Home Mortgage?

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One Response to “American Home Mortgage?”

1. Overt Operative on: 3 August 2009 at 3:53 am

   This entire lending scam has me flabbergasted. The central bank is responsible for regulating the mortgage industry. The central bank determines the requirements that borrowers muct meet in order for lending institutes to issue a loan.
   The federal government dropped federal loan programs aimed at low income families and 1st time buyers decades ago. Programs like Farmer’s Home Loan and FHA went out the window under Reagan, I believe. These federally backed loans were scrapped and replaced by the private subprime loans. The central bank eased requirements on private lending institutes so weak mortgages could be issued and relieve the federal government of low income loans.
   Today with the crash of subprime, everyone is blaming the people who took out loans they couldn’t afford. No one is pointing the finger at the central bank, the government, nor the lending institutes.
   Who is really to blame, the people who took out the loans, the people who gave the loans, or the people who made the rules for the loans?
   One must also look at the real reason for the loan defaults, the increased interest rates.
   Why did the interest rates increase?
   Inflation.
   Why did we enter into an inflationary cycle?
   Federal deficit spending.
   Why do we have huge federal deficit spending?
   An expensive, prolonged war in the middle east.

   So, the why I see it, this subprime crash is another price Americans are paying for the war in Iraq. At whom can you point the finger for that debacle?