Capital New York

Eagle 6 commented on Bloomberg: 'Plain and simple,' Congress caused the mortgage crisis, not the banks

Not one comment about personal responsibility. I was in the Mortgage business for 3 years between 1990 and 1993 - rules were in place. During the "free money" phase a few years later, there were no rules. There is documentation that then President Bush encouraged people to buy homes, but he also cautioned against irresponsible lending. The Purple Dinosaur Frank assured the public that these loans were good. But let's go back to the beginning... where is the personal responsiblity of the homeowners? Granted, banks were happy to lend $100,000 on a home today because tomorrow, that same home would be worth $120,000, so they weren't that worried... they could re-sell it for a profit. Then the reality phase of the mortgage Ponzi scheme surfaced when balloon payments came to fruition...Bottom line: where are the borrowers' responsibilities in this fiasco? Oh....they are Occupying Wall Street, Atlanta, and othere places that promote irresponsibility...

Posted on November 2nd, 2011 9:58pm