The 2008 crash ignores the role average citizens played, IN ADDITION TO FINANCIAL INDUSTRY FRAUD

TEH

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∆y = f(∆x) said:
Look, I know banks committed fraud in mislabeling loans, by lying about the quality of loans, pushing terrible terms, exploiting public ignorance, defrauding the public trust and frankly offered products they shouldn't have offered....

...but...

...even if you saw The Big Short

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What people don't mention is that PEOPLE HAD NO BUSINESS BUYING HOMES ON PROPERTY THEY COULD NOT AFFORD WITH TERMS THEY SHOULD NOT HAVE AGREED TO!!!!

What were people thinking?!?

Folks were making $50K a year buying $300K+ houses!! :mindblown:

How the hell did people ever think that was going to work?????

You had people buying 2nd and 3rd homes like they were cars!!!!

EVERYONE wanted a deal back then. They all thought they could beat the market and ride the wave to the top.

Why the hell are you signing paperwork for adjustable loans???
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Bumblebreh

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Oldschooler said:
Most regular people are sheep and follow the crowd. It's up to the government to properly educate them on these financial matters. The government issues warnings about bad drugs or chemicals all the time. Why couldn't they do it for bad lenders. Unless they were in on it! Of course they were right they receive millions of dollars from the bankers every year. By the way this shyt still goes on in large cities. Borrowing 300k on a 50k wage over a period of 30 years aint even that bad. Try borrowing 800k on 100k income cus that's what a regular house costs in major cities. The only things keeping shyt affloat is the fact that house values have gone up significantly.
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Exactly as people were getting approved without the needed credit scores and the deposits.What fukked people up the most was the non fixed high interest rates.So the house can be worth at the time at 300k.Add on a 10 percent interest and you will have 330k worth of debt.The type of mortgage matters and the fixed period interest rate matters.How much you put into the deposit matters.The potential resale value matters.
People were taking out mortgages in which they were paying the interest first and they were hit hard with a sum in which they were not able to afford.
 
Cynic

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∆y = f(∆x) said:
Did you not read the first part of the first thing I said?

I said THEY WERE WRONG FOR THAT...

but no one told these people to sign fukked up deals in 2005, 2006, and 2007.
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You made an edit after that response ...

You can't simply shift the blame on borrowers as the trust in banks was ingrained
and the falsehood of appreciation was being pushed by brokers

This is one case where borrowers AND investors got f*cked by Wall street

Are you going to keep that same energy with investors who thought they were buying triple A investments
on some "nobody told them to buy those investments" bullsh!t ?
 
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Mr Mulsanne said:
Exactly as people were getting approved without the needed credit scores and the deposits.What fukked people up the most was the non fixed high interest rates.So the house can be worth at the time at 300k.Add on a 10 percent interest and you will have 330k worth of debt.The type of mortgage matters and the fixed period interest rate matters.How much you put into the deposit matters.The potential resale value matters.
People were taking out mortgages in which they were paying the interest first and they were hit hard with a sum in which they were not able to afford.
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:wow:

And people STILL ain't learn :wow:
 
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Cynic said:
You made an edit after that response ...

You can't simply shift the blame on borrowers as the trust in banks was ingrained
and the falsehood of appreciation was being pushed by brokers

This is one case where borrowers AND investors got f*cked by Wall street

Are you going to keep that same energy with investors who thought they were buying triple A investments
on some "nobody told them to buy those investments" bullsh!t ?
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Bruh, people look at houses different from their Visa cards for some reason.

I mean they literally call "mortgage" a different thing from a "car loan" or a "bill"

its all the same. debt is debt. Thats the funny thing about all of this.

People see homes and just shrug and say "they said I can have it" without looking at what they're signing onto.

I agree with you...the industry duped people. But thats why theres supposed to be regulation protecting the public's trust. Just like in medicine and healthcare. I'm not disagreeing with you.

But what's that got to do with the AVERAGE citizen?

The average citizen was NOT buying AAA credit CDOs. Thats an institutional failure.

I'm talking about school teachers buying condos they could never afford unless they closed their eyes and imagined magic was happening!
 
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∆y = f(∆x) said:
Bruh, people look at houses different from their Visa cards for some reason.

I mean they literally call "mortgage" a different thing from a "car loan" or a "bill"

its all the same. debt is debt. Thats the funny thing about all of this.

People see homes and just shrug and say "they said I can have it" without looking at what they're signing onto.

I agree with you...the industry duped people. But thats why theres supposed to be regulation protecting the public's trust. Just like in medicine and healthcare. I'm not disagreeing with you.

But what's that got to do with the AVERAGE citizen?

The average citizen was NOT buying AAA credit CDOs. Thats an institutional failure.

I'm talking about school teachers buying condos they could never afford unless they closed their eyes and imagined magic was happening!
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They justified it due to appreciation - why are you overlooking this part ?

I'm not going to berate the average citizens like you because I'm not an elitist.
 
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∆y = f(∆x) said:
Wait, who told my mom's hairdresser to buy a 250K townhouse in 2006? :stopitslime:

Yes, the system failed her by telling her she could live her dream and did not tell her the reality of her situation by stopping her from getting that loan.

...but who signed that deal? Come on now.

Theres a reason everyone ain't pushing G-Wagons instead of Honda Pilots right now either. People see housing as some far off distant thing, not the every-day financial decision they make!!!

I'm dead serious right now.
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Did she lose her town house? And how come she couldn't pay the mortgage?
 
Tommy Knocks

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∆y = f(∆x) said:
You know how this shyt doesn't make sense to you?

Well that was a few million Americans in 2008.
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But still tho. When I bought my camaro I saw the payment before I signed, I knew what I could handle

How fukk you signing knowing the payment is an entire check like wtf, your parents teach you that by 18 and you start getting credit card forms in the mail
 
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