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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (55399)	3/22/2008 3:06:06 PM
From: Dale Baker	Respond to of 542214

Agreed, the market finally wised up and dried up the warehouse funding lines going to the mortgage sleazeballs. But in case they forget too quickly, some nice new regs on proving a borrower's actual ability to pay would be good for all. Coupled with new regs on risky securities being relabeled and passed off as AAA. Take out those two bleeding wounds and the credit crunch never happens, not like we have seen it.

To: slacker711 who wrote (55399)	3/23/2008 11:11:32 AM
From: DanD	Respond to of 542214

If interest rates stay low and money is looking for a home, they'll find a new place to waste their money other than housing. The consumer was not the greatest fool in this crisis. They took the free money that the banks were offering; speculating that there home values may rise. It was banks, major banks, that were margined to an a unbelievable extent on their own speculations that is the root of this particular crisis. We probably should have had a healthy real estate correction/recession two or three years before the one we had, but lenders willingness to extend upside down credit, turned this into a banking crisis, instead of just a real estate correction like the late 80's that will without a doubt occur again. Dan D.