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**Mugflefusysef** · 02-03-2011, 03:43 PM

The bankers and financial institutions have the bulk of the blame to be sure. After all, they lent money to any one who could fog a mirror. However, lets not forget the the blame that goes to the masses that bought into the ridiculous notion that one could buy a home that one really couldn't afford, but believed would simply increase in value into perpetuity, thereby making it a good investment.

There was regulation. It was called the Glass Steagall Act, and worked fine for over 50 years until Clinton repealed it. (it was passed by overwhelming by partisan vote in the house, far exceeding the necessary 2/3 vote to override a presidential veto, if indeed there was to be one. However, Clinton wanted the credit for passing it... so now he gets it.)

The teachers are not to blame, but their unions negotiated with politicians that they had in their back pocket to get sweetheart deals that the tax payer can not afford to keep.

But it has always been the banker's job to NOT lend to folks that could not afford it. I would imagine that many of these folks who got loans had no clue their interest rates would increase a couple years down the road. The bankers for some reason never looked at that rate increase vs. income when they made the loans. No, this was greed on the part of Wall St. and some bankers. Then when oi peaked in price, this took away from the money that was to be used for loan payments. Then we had the crash. There was a plethora of factors that played a role in the crash, but greed of Wall St. was the greatest factor of all.

Yet, neither the Repubs or Dems have fixed the financial sector, and the things that help out with the crash are still alive and well, even after the Dodd/Franks Reform. I reckon the financiers wrote that Reform!

Ah, the smell of campaign contributions and napalm in the morning.

02-03-2011, 03:43 PM	#16
Mugflefusysef Join Date Oct 2005 Posts 540 Senior Member	The bankers and financial institutions have the bulk of the blame to be sure. After all, they lent money to any one who could fog a mirror. However, lets not forget the the blame that goes to the masses that bought into the ridiculous notion that one could buy a home that one really couldn't afford, but believed would simply increase in value into perpetuity, thereby making it a good investment. There was regulation. It was called the Glass Steagall Act, and worked fine for over 50 years until Clinton repealed it. (it was passed by overwhelming by partisan vote in the house, far exceeding the necessary 2/3 vote to override a presidential veto, if indeed there was to be one. However, Clinton wanted the credit for passing it... so now he gets it.) The teachers are not to blame, but their unions negotiated with politicians that they had in their back pocket to get sweetheart deals that the tax payer can not afford to keep. But it has always been the banker's job to NOT lend to folks that could not afford it. I would imagine that many of these folks who got loans had no clue their interest rates would increase a couple years down the road. The bankers for some reason never looked at that rate increase vs. income when they made the loans. No, this was greed on the part of Wall St. and some bankers. Then when oi peaked in price, this took away from the money that was to be used for loan payments. Then we had the crash. There was a plethora of factors that played a role in the crash, but greed of Wall St. was the greatest factor of all. Yet, neither the Repubs or Dems have fixed the financial sector, and the things that help out with the crash are still alive and well, even after the Dodd/Franks Reform. I reckon the financiers wrote that Reform! Ah, the smell of campaign contributions and napalm in the morning.
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