09-25-2008, 06:08 AM
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Registered User
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Join Date: Jul 2004
Location: midwest
Posts: 637
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Quote:
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Originally Posted by Lord Snow
There is a point where when you expand to much to quick it breaks. That's exactly what happened. The market grew to a point where it was out of control and now it's broken. I did notice that the president didn't say exactly what the plan was besides bailing out a few major companies.
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No what happened is greedy bankers figured out a way to make money off stupid people by convincing them they could afford houses that they couldn't. That is a recipe for disaster no matter how you cut it. The bankers didn't stop to think of the consequences of these loans failing in the long run because of the huge short term profits. Which was amazingly stupid of them since a monthly mortgage payment of half your salary is pretty much designed to fail. The idiot consumer on the other hand listened to the banker and took on those low low initial payments.
The only thing that grew too fast was the market of greedy to stupid. Bankers saw an easy short term profit, and the consumer saw that house that they "deserved" to have.
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