| Subprime Lending (2008-05-05) |
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marotta
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| Subprime Lending (2008-05-05) |
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Subprime Lending (2008-05-05)
by David John Marotta
The subprime mortgage meltdown has cost the world 15% of its market capitalization, about $9 trillion. The primary culprit who caused all of this financial loss, pain and suffering is not the mortgage companies. Neither is it the overextended borrowers. It is our own federal regulations interfering with the free market.
Read the complete column at http://www.emarotta.com/article.php?ID=282
David John Marotta
Marotta Asset Management, Inc.
Fee-only Financial Planning
http://www.emarotta.com
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Tue May 06, 2008 1:31 pm |
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cbass1017
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I'm sorry to argue but I think it's just rediculous that we blame the government for the subprime crises we're dealing with. There are so many other factors to consider. That's kind of like saying "I can't pay my credit card bills anymore because of the government" We are all to blame for the situation we find ourselves in. When we live in a world were most people drive vehicles that cost almost as much as the homes we live in, and everyone needs a cell phone and satalite with DVR and central air and labtops and desktops and this and that. Come on now. The government caused all of this... I don't think so.
sorry but we'll just have to agree to disagree on this one...
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Mon May 26, 2008 1:45 am |
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financialpeace
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Yeah, I agree, to some extent it's both, and yes, I did read the article. It was a well thought out article, and for the most part, the majority of the arguments fit with the problems we see today, but... I saw one common thread throughout the article that kinda bothered me, and that was how the government 'forced' consumers to buy homes at inflated prices or atleast at prices well out of our personal reach.
I don't remember any KGB or CIA dude coming up to me on a low-lit street corner late at night saying, "Zou zwill byez a houz' e-mediately, or wee have whayz of making zou tauk!" Poking me in the ribs with a 9mm parabellum trough his trench coat pocket.
Sure, the government promoted a lazy overspending wreckless lifestyle through many of its avenues including banking/lending/credit industry policies, but 'WE THE PEOPLE' signed up for it, now we'll pay for it. What do you expect from the government? Controlled, responsible spending? The government's spending is out of control, so why wouldn't they want the PEOPLE's finances to be a wreck as well? Misery loves company.
State and local governments really benefited from the real estate buying orgy too, who hasn't seen their property taxes increase 150% in the last 5-7yrs? Anyone think they didn't 'push' the sale a little bit?
Tax man says, "Let's see, how can we get more revenue, so I can spend more and become even more of a irresponsible self-wallowing porker?" Oh, how bout we qualify everyone, especially get those 'first-time home buyers', they really need to get into a home! So they can pay taxes.
Yep, it's surely a problem the government promoted and 'we' bought it, hook line and sinker...
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Mon May 26, 2008 11:07 pm |
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financialpeace
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quote:
WE the people ARE the government, and WE the people ARE responsible. So.......YOU'RE BOTH RIGHT!!
Seriously, it's a combination of many things, the greatest of which is greed.
That's the bottom line, couldn't have said it better, but I did try... 
It really bugs me when someone can take my entire 20+ paragraphs of babble, and sum it all up in 2 sentences!  I really should tell my therapist about this... oh wait! I don't have a therapist. Maybe I should get one? 
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Tue May 27, 2008 4:17 am |
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financialpeace
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Though I didn't agree entirely with the opening statements regarding 'who's to blame' and a few other points throughout the piece, I thought it was a very informative article and very well written, and I learned alot. A good educational piece on the inner workings of the USgov/banks/RE and those wonderful 'consumers'! P.T. Barnum was right...
Thanks marotta for posting it.
cbass1017, you're right! Consumerism is our downfall, not our government.
coaster, you're right! We are the government, if we don't like it, we need to change it, the way we change it is to: VOTE!
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Tue May 27, 2008 5:12 am |
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austin
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I think its a combination of government, mortgage companies and buyers that took out more loans than they could pay. The government didnt force banks to give loans to everyone that walked in the door and it didnt force buyers to overextend.
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Mon Jun 16, 2008 6:24 am |
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aleish
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All I can say is the we the one responsible to our destiny.. SO we are responsible if we are in debt. 
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Wed Jun 25, 2008 1:49 am |
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aika
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everyone of us is responsible for our actions, no one is to blame but ourselves. But about corruption, that is another issue. 
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Wed Jun 25, 2008 5:51 am |
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