Do any of you out there know where this current housing crisis started at? What events caused it to happen? There is one particular event in recent history that happened that made it possible. Bill Clinton repealed a law...I forget the name of the act but some of you out there may know it...created in the 1930s or 20s to prevent the housing crisis today. I am by no means a fan of George Bush but to lay the current mortgage crisis at his feet is an absurdity. Bill Clinton is responsible. He repealed the law in his last days in office that allowed the current crisis to unfold.

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I don't give a crap if it has been done that way for 10,50 200 years, that doesn't mean that it is the best way to do it.

1. Like all things if the price is based on speculation and not the actual market that is a price bubble which burst.

2. People bought Homes they could not afford taking risky loans thinking the house would appreciate or they would be making more money.

3. Banks are hurt by defaults and stop giving out as much credit, meaning less people that can actually afford a home can buy one. Meaning Home prices fall even lower because of lower demand.



Whats going to happen now is that Larger Banks or Investment groups will buy out struggling banks and along with the Fed policy will infuse more liquidity into the market. At the same time because of the price drop more people will be able to buy homes thus increasing demand and stablising falling prices. SO I would say a year or two and we will have equilibrim in the market and then start going slowly back up.

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"True Freedom is the Freedom to oppress others"

This is a complete explanation, but a fairly accurate summarization. Lots of people to blame, but outside of it is the fact that we were in a housing bubble, and economics are cyclical, you can't stop on top forever.

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"Those who stand for nothing fall for anything. " - Alexander Hamilton

I believe the situation is not one the government should really be blamed for. This crisis is one of our own making, and not anything that any one person or persons in the government brought about.

People don't want to take personal responsibility for their actions and so the government becomes a convenient scapegoat. In a free economy there are many opportunities to make a good deal for yourself, and there are just as many opportunities for you to screw yourself.

The simple fact of the matter is, that these people made bad choices, mostly because they wanted a shortcut to that bigger, better house. They didn't do their research, and didn't take the time to understand the risks involved in an interest only loan, or an adjustable rate mortgage with a balloon payment, or any of the other pitfalls that can occur when you take the fast track. Look at the areas hardest hit--California, Nevada. Places with overinflated property values. You have people buying homes that are 3x the price of the same valued home elsewhere.

As a buyer, it's your responsibility to make sure that you understand the market. You can't blame it on your Realtor, or your Mortgage Broker or your lender. They are only going to approve/disapprove what you ask for. They let you know what your options are--but the real control is yours. If you don't think you can afford the mortgage, then don't buy the home!

When my brother bought his house, he actually went through two or three Real Estate agents. Why? Because they kept trying to show him houses that were really out of his price range. He stuck to his guns and his budget. He used an adjustable rate loan to get into the home, and then refinanced a year or so later to get into a fixed rate mortgage.

No one made these people sign their name. No one prevented any of these people from asking questions about their loan or shopping around to get two or three different quotes or more on different products, or attending real estate buyer classes to get a better understanding of what you can get yourself into. People want to rush through buying a house, because they want the result without given thought to the cost or consequences.

The bottom line is, these people made their own choices--and now want the government to step in and pick up the check now that the bill's come due.

with war debt, nothing else.

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I don't give a crap if it has been done that way for 10,50 200 years, that doesn't mean that it is the best way to do it.

HUD has programs in every state about homebuying. I wonder how many of these people who are in trouble now, attended?

http://www.hud.gov/buying/localbuying.cfm

There are a hundred other non-profit organizations offering similar classes. If this is your first time buying a home, you should count on spending 3-6 months learning before you even contact a realtor. When you get a contract, you should take it to an attorney, or to perhaps a HUD field office and get someone to explain it to you who has no vested interest in whether or not you say yes or no to it.

I would completely agree with what you said. However, I would also have the banks take some responsibility for loaning money to sub-primes that they knew could not afford the balloon/interest-only payments when the time came due. The fact is, the banks did play some role in this as well. They are not blameless as they made risky decisions too and lent money to people who shouldn't have gotten loans in the first place. There should have been better oversight on behalf of the banks.

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Those who cannot think or take responsibility for themselves need, and clamor for, a leader.

I was in the market for a house at the time this thing started. We were looking at an old farm house that sits on 4 1/2 acres that was listed at 180,000. It needed a lot of work and had been on the market for 2 weeks. We made an offer slightly less than the 180 and found out that someone had come in from out of town and offered 200,000. The prices on houses in the area immediately jumped.

We sat back and watched these old farm houses sell for 10-20% more than they were just weeks earlier. Now 2 of the homes are being for-closed on including the one we were originally interested in.

The person who bought that home also bought another and hoped to do a little work and turn it quickly. I am happy to say that after talking to my banker friend he thinks I could buy it out of for-closure for around 160.

Being the capitalist that I am I offered 20% down at 145, cheers to the idiots of the world because by the end of the day I may have my castle for 32,000 less than I was willing to pay.

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ABoyNamedSue - Speaking of Crestwoods posts - And then there'll be some link to some page, written in hindu or something, talking about sherpas and A&W root beer, and how George Bush is to blame for some Jewish neo-nazi death camp, run by Elvis Presley, on the far side of the moon that's been busted for killing kittens or something

Ain't that ducky!!?? Was that even considered in our history before?

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I don't give a crap if it has been done that way for 10,50 200 years, that doesn't mean that it is the best way to do it.