Comments on: Poll: Who’s Most to Blame for the U.S. Credit Problems? http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/?utm_source=rss&utm_medium=rss&utm_campaign=poll-whos-most-to-blame-for-the-us-credit-problems Helping a unique generation achieve financial independence. Fri, 03 Sep 2010 08:00:43 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Stacy http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-87779 Stacy Tue, 23 Sep 2008 14:02:38 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-87779 I have been in my home for 10 yrs now. We have been through hard times an refinanced our home to pay off bills due to the loss of income but I have never missed a payment. I think the problem goes back to not READING all of the print on the paper before you sign your live away. Bailing out all these people is not fair. Where is my help I want to move to a new house out of the city but I know I cant carry a 300k loan I can only afford a 170k loan try to find a home for that price in a nice area. The problem is when people cant get it the smart way with a fixed loan they turn to an alt a loan to get what they want NOW. It is a way to keep up. I bought my house when I was 22 yrs old. Let me tell you it was all I could afford at the time by my calculations 1 paycheck per mo. I was offered an alt a loan even back then. I went home a looked into all the options the bank gave me and went for the fixed this way it would stay the same right? Wrong I still had to pay taxes... These first time home buyers should be forced to take a class before they buy a home this way when they sighn a bad loan that they cant afford later the only one they have to blame is themself. I have been in my home for 10 yrs now. We have been through hard times an refinanced our home to pay off bills due to the loss of income but I have never missed a payment. I think the problem goes back to not READING all of the print on the paper before you sign your live away. Bailing out all these people is not fair. Where is my help I want to move to a new house out of the city but I know I cant carry a 300k loan I can only afford a 170k loan try to find a home for that price in a nice area. The problem is when people cant get it the smart way with a fixed loan they turn to an alt a loan to get what they want NOW. It is a way to keep up. I bought my house when I was 22 yrs old. Let me tell you it was all I could afford at the time by my calculations 1 paycheck per mo. I was offered an alt a loan even back then. I went home a looked into all the options the bank gave me and went for the fixed this way it would stay the same right? Wrong I still had to pay taxes… These first time home buyers should be forced to take a class before they buy a home this way when they sighn a bad loan that they cant afford later the only one they have to blame is themself.

]]> By: Zook http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-24079 Zook Mon, 17 Sep 2007 21:41:27 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-24079 MoneyNing- You mean you its Bank of America's fault when I get a credit card through them and buy a new wardrobe from Neimen Marcus? It's CitiBank's fault I NEEDED to have a 50" LG plasma TV from Circuit City? Give me the first example you think of when you typed that post. We are talking about consumer credit here right? I feel like I missed something. And Heather....Take a walk outside and get some fresh air. WE [as in you and me] live in the greatest country the world has ever seen. I'll keep it that simple because there is no need to go further down that negative track. MoneyNing-

You mean you its Bank of America’s fault when I get a credit card through them and buy a new wardrobe from Neimen Marcus? It’s CitiBank’s fault I NEEDED to have a 50″ LG plasma TV from Circuit City? Give me the first example you think of when you typed that post.

We are talking about consumer credit here right? I feel like I missed something.

And Heather….Take a walk outside and get some fresh air. WE [as in you and me] live in the greatest country the world has ever seen. I’ll keep it that simple because there is no need to go further down that negative track.

]]> By: Heather http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23956 Heather Mon, 17 Sep 2007 05:45:43 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23956 Our capitalist government. Never about human beings, only about cold-blooded acquisition and cultivating the appearance of wealth. Welcome to United States Junior High. Our capitalist government. Never about human beings, only about cold-blooded acquisition and cultivating the appearance of wealth. Welcome to United States Junior High.

]]> By: MoneyNing http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23954 MoneyNing Mon, 17 Sep 2007 05:20:05 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23954 It's the lenders because they allow everyone to borrow without knowing the risks involved. There are so many people that borrowed money without knowing anything about the loan. It’s the lenders because they allow everyone to borrow without knowing the risks involved. There are so many people that borrowed money without knowing anything about the loan.

]]> By: The Decision Strategist http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23642 The Decision Strategist Fri, 14 Sep 2007 22:17:16 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23642 I selected other. I think the problem is rooted in fiscal policy. Incredibly low interest rates and effectively subsidized mortgages by the Fed and Fannie Mae. Lenders took advantage of being able to sell their mortgages as securities. Investment firms took advantage of CDO's to pitch them. Thought I think buyers are responsible for making the purchase, I guess I consider them the least responsible, since they were fed all kinds of marketing speak to make them buy. Great poll by the way. I selected other. I think the problem is rooted in fiscal policy. Incredibly low interest rates and effectively subsidized mortgages by the Fed and Fannie Mae.

Lenders took advantage of being able to sell their mortgages as securities. Investment firms took advantage of CDO’s to pitch them.

Thought I think buyers are responsible for making the purchase, I guess I consider them the least responsible, since they were fed all kinds of marketing speak to make them buy.

Great poll by the way.

]]> By: Webomatica http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23611 Webomatica Fri, 14 Sep 2007 18:31:05 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23611 There are many similarities here to the .com boom and bust in terms of people's thought that the boom times would last "forever" - or at least long enough that people would be able to cash out at the first sign of trouble. Unfortunately, as we're seeing that's easier said than done. I place about equal blame to the borrowers and lenders. I think some who signed on for these interest only loans assumed too much - that the appreciation would continue (or they could sell quickly and get out) - or that the mortage companies were looking out for their best interests - meaning if they were going to offer up a loan of 600K on an income of 50K, it must mean the buyer could afford it, right? Wrong. Whenever borrowing money there has to be an incentive for the borrower to do so - money isn't free, but for a while it may have seemed that way. At the end of the day many of the lenders didn't believe that the borrowers would take on loans that they couldn't afford and the borrowers didn't believe they'd be lent the money if they had no ability to repay it. Both parties are to blame - I just hope their mistakes borne of greed don't affect the rest of the economy and toss this country into recession or impact those of us who are more fiscally conservative. There are many similarities here to the .com boom and bust in terms of people’s thought that the boom times would last “forever” – or at least long enough that people would be able to cash out at the first sign of trouble. Unfortunately, as we’re seeing that’s easier said than done.

I place about equal blame to the borrowers and lenders. I think some who signed on for these interest only loans assumed too much – that the appreciation would continue (or they could sell quickly and get out) – or that the mortage companies were looking out for their best interests – meaning if they were going to offer up a loan of 600K on an income of 50K, it must mean the buyer could afford it, right? Wrong.

Whenever borrowing money there has to be an incentive for the borrower to do so – money isn’t free, but for a while it may have seemed that way. At the end of the day many of the lenders didn’t believe that the borrowers would take on loans that they couldn’t afford and the borrowers didn’t believe they’d be lent the money if they had no ability to repay it.

Both parties are to blame – I just hope their mistakes borne of greed don’t affect the rest of the economy and toss this country into recession or impact those of us who are more fiscally conservative.

]]> By: Steve Austin http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23607 Steve Austin Fri, 14 Sep 2007 17:41:33 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23607 No bailouts or other fixes needed; the free market will work it all out. All individuals --- borrowers, lenders, or others -- will have their transactions subject to market mechanisms. Here's a relevant quote from Shiller's Irrational Exuberance, 2nd ed., last chapter: "...in a free society, we cannot protect people from all the consequences of their own errors. We cannot protect people completely without denying them the possibility of achieving their own fulfillment. We cannot completely protect society from the effects of waves of irrational exuberance *or* irrational pessimism --- emotional reactions that are themselves part of the human condition." No bailouts or other fixes needed; the free market will work it all out. All individuals — borrowers, lenders, or others — will have their transactions subject to market mechanisms.

Here’s a relevant quote from Shiller’s Irrational Exuberance, 2nd ed., last chapter:

“…in a free society, we cannot protect people from all the consequences of their own errors. We cannot protect people completely without denying them the possibility of achieving their own fulfillment. We cannot completely protect society from the effects of waves of irrational exuberance *or* irrational pessimism — emotional reactions that are themselves part of the human condition.”

]]> By: Beth http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23588 Beth Fri, 14 Sep 2007 15:49:41 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23588 I say it's the borrowers. It's no more the lenders' fault than it is the house builders for making bigger houses, the fashion designers for coming up with new fashions, or the tech industry for coming up with new gadgets. They're doing what the people demand. If the borrowers were responsible, the lenders' 'fault' in this would be moot--no one would be doing things to get in trouble, even with more risky lending practices. Lenders make it possible for us to get in trouble, but ultimate we get in trouble. Car manufacturers make it possible for me to go 100 mph, but if I get in an accident at 100 mph, I doubt anyone is going to stand up and say it's the manufacturer's fault (it isn't). It's my fault for pushing down the gas pedal. It's fun to go fast, but there are consequences (and thusly, I never go very far above the speed limit). It's fun to buy things, but you're responsible for how much you buy. I say it’s the borrowers. It’s no more the lenders’ fault than it is the house builders for making bigger houses, the fashion designers for coming up with new fashions, or the tech industry for coming up with new gadgets. They’re doing what the people demand. If the borrowers were responsible, the lenders’ ‘fault’ in this would be moot–no one would be doing things to get in trouble, even with more risky lending practices.

Lenders make it possible for us to get in trouble, but ultimate we get in trouble. Car manufacturers make it possible for me to go 100 mph, but if I get in an accident at 100 mph, I doubt anyone is going to stand up and say it’s the manufacturer’s fault (it isn’t). It’s my fault for pushing down the gas pedal. It’s fun to go fast, but there are consequences (and thusly, I never go very far above the speed limit). It’s fun to buy things, but you’re responsible for how much you buy.

]]> By: JadeEJF http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23585 JadeEJF Fri, 14 Sep 2007 15:41:27 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23585 I thought <a href="http://www.nuwireinvestor.com/articles/2007s-top-10-investments-under-25000-51231.aspx">this article</a> about getting started in alternative investments might be interesting to cover on your blog! I thought this article about getting started in alternative investments might be interesting to cover on your blog!

]]> By: Joe Miller http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/comment-page-1/#comment-23583 Joe Miller Fri, 14 Sep 2007 15:33:07 +0000 http://genxfinance.com/2007/09/13/poll-whos-most-to-blame-for-the-us-credit-problems/#comment-23583 I did not see an option for "the media" on here. I think the media are very much to blame, although everyone listed has contributed to the problem, in one way or another. Media perpetuates the images and status symbols that consumers think they must have in order to ape the lifestyles of the depicted models and celebrities. But consumers are to blame for confusing needs and wants and for equating happiness with being able to impress others through the acquisition of the advertised goods and services. I did not see an option for “the media” on here. I think the media are very much to blame, although everyone listed has contributed to the problem, in one way or another.

Media perpetuates the images and status symbols that consumers think they must have in order to ape the lifestyles of the depicted models and celebrities. But consumers are to blame for confusing needs and wants and for equating happiness with being able to impress others through the acquisition of the advertised goods and services.

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