Why are banks and the government to blame ...

... for people making asinine decisions about mortgages and then also thinking their homes were ATMs?

Is that a troll or do you believe that all people with a negative equity mortgage made an asinine decision?

Tonyrob

If the decision wasn't asinine then by definition that person did not make an asinine decision. However, the bottom line remains that if someone is upside down and no one coerced or defrauded them, why is that the fault of the public sector or a bank? Should we not be responsible for our decisions? Now it's unfortunate when folks are overrun by larger forces, be they health or economic, but like when deciding to have a baby, that person made the call and needs to deal with the consequences. And if there's a second and a third out there for a boat or an RV or a boob job ...

Oh so many were intrigued with the "interest only" loans they could obtain and hell they could afford that boat! I guess I am old school, if I did not have 20% or more to put down on a home I would assume I probably can't afford it.

The public was the "meth addicts" and the banks and government were the "dealers"! Folks got what they thought they wanted until pay back time came!


Ken, not sure about yourself; but Beth and I always rent a car in Vegas. We drive out in the subs and look at the new home models trying to get ideas. We just shook our heads that anything decent was close to a million then ( 5 years or so ago) we wondered who the hell could afford these block after block homes! We found out 2 years ago I guess, very few that's who!

One must remember some one else is ALWAYS to blame! Personal Responsibility does not factor in.

Welcome to the Wild Wild West, Randy. Vegas wasn't alone with the McMansion Madness, though it did seem to do it, as only Vegas can, so much "better" than most. We've made an offer on a short sale; it's happening all over. Good for some. Sad for others. I don't think they had guns at their heads.

Responsibility is a disappearing art in America, be it personal, professional or political.

For myself - if I can't buy it cash then I can't buy it period. That goes for car, house - anything. But I do feel for the young first time buyers who had a hard-sell sales job done on them by some commissioned broker - and now they lose everything. They didn't make an asinine decision. They were dealing with someone who was supposed to be advising them. Too trusting? Certainly. Naive? Absolutely. Asinine? No.

Tonyrob

So no one made asinine decisions? Please. This market carnage is not simply the result of some pushy banks and RE agents. As Randy said, many folks saw a quick path to a desired end, and that's seldom a wise, rational route.

Some did - some didn't. Banks offering ridiculous no deposit long-term ballooning loans to people who saw that as the only way to ownership are to blame for their own greed. They are now reaping what they sowed.

Tonyrob

It boils down to a lack of COMMON SENSE.If you make 35,000 a year, you cannot afford a $2000.00 a month payment.Shame on the policies of Freddy and Fanny,who encouraged home ownership for all,shame on the government for a total lack of regulation,shame on the mortgage brokers that got filthy rich at the expense of the taxpayer, and shame on those who really thought that somehow the prices would keep going up for ever.
I really feel for those who,like my kids,did not buy over their heads,but are now upside down,and pretty much stuck. Bob

A collective failure, can we call it that?

The civic discourse has devolved into one of blame, but sadly only unilateral blame. We aren't getting anywhere because while you might not like who is pulling on the oar next to you, figuratively, we all have oars to pull in unison if we are to get anywhere. Sure, there is plenty of blame to go around, but like the larger mess, it's not Obama's fault or Bush's fault, it's not the fault of Wall Street or Main Street or or or. We need to get rid of the "or." It's like a patchwork quilt. All of us, every institution, every elected regardless party, both parties, every citizen who bitches to high heaven yet hasn't voted in eons -- and we do NOT vote as a people -- are part of the larger construct and all have failed the quilt in some way. We all hate Congress, right?

I imagine we'll see the usual 90+ percent return rate in the next round of elections.

So who hates Congress, exactly?

Taxpayers should bail out buyers young or old whose only sin might've been a lack of common sense? Or as in Bob's kids' case, if they purchased wisely, who or what bears responsibility to maintain a stable or growing housing market, if that is even something we can or should expect? Should we have let the institutions fall? Greedy corporations? Is that something new or does it now only show up because of the stark contrast; what's the adage, you can piss away quite a bit of money if you are making a lot of money. It's about what is felt, noticed. DC did NOT become unresponsive because of a Bush admin or an Obama admin. It's been that way for a very long time. Again, when everyone is happy -- and happy in America equals work and money -- not much else matters. Now the much else matters.

So we are in the shitter but what will change in the long run?

Tony or Rob or whomever you are. I'm sorry for the "asinine" word choice. But I truly was talking about those who had the brains to know otherwise but still went ahead and did the interest-only buy-toys route. That is asinine behavior. There obviously are those, like Bob seems to indicate, who tried to do the right thing.

Regardless, what is the role of the public sector in this? Bail out the corps so now bail out the people?